Required Minimum Distributions (RMDs) are mandatory annual withdrawals from tax-deferred retirement accounts once you reach a certain age. Missing an RMD triggers significant penalties, so knowing your amount is critical.
Table of Contents
RMD Quick Reference Table
Here’s how much you must withdraw at each age, per $100,000 of account balance:
| Age | Distribution Period | RMD per $100,000 | Effective Rate |
|---|---|---|---|
| 73 | 26.5 | $3,774 | 3.77% |
| 74 | 25.5 | $3,922 | 3.92% |
| 75 | 24.6 | $4,065 | 4.07% |
| 76 | 23.7 | $4,219 | 4.22% |
| 77 | 22.9 | $4,367 | 4.37% |
| 78 | 22.0 | $4,545 | 4.55% |
| 79 | 21.1 | $4,739 | 4.74% |
| 80 | 20.2 | $4,950 | 4.95% |
| 85 | 16.0 | $6,250 | 6.25% |
| 90 | 12.2 | $8,197 | 8.20% |
| 95 | 8.9 | $11,236 | 11.24% |
When Do RMDs Start?
| Birth Year | RMD Starting Age | First RMD Deadline |
|---|---|---|
| 1950 or earlier | 72 | Already started |
| 1951–1959 | 73 | Year you turn 73 |
| 1960 or later | 75 | Year you turn 75 |
Your first RMD can be delayed until April 1 of the year after you turn the required age — but then you must take two RMDs that year (which could push you into a higher tax bracket).
Which Accounts Require RMDs?
| Account Type | RMDs Required? | Notes |
|---|---|---|
| Traditional IRA | Yes | At age 73 (75 from 2033) |
| Traditional 401k | Yes | At 73, unless still working for that employer |
| 403b | Yes | Same rules as 401k |
| SEP IRA | Yes | Same as Traditional IRA |
| SIMPLE IRA | Yes | Same as Traditional IRA |
| Roth IRA | No | No RMDs during owner’s lifetime |
| Roth 401k | No | Changed under SECURE 2.0 (no RMDs from 2024+) |
| Inherited IRA | Yes | 10-year rule for most non-spouse beneficiaries |
RMD Calculation Examples
Example 1: Age 75, $500,000 Balance
| Item | Value |
|---|---|
| Account balance (Dec 31 prior year) | $500,000 |
| Distribution period (age 75) | 24.6 |
| RMD | $20,325 |
Example 2: Age 80, $750,000 Balance
| Item | Value |
|---|---|
| Account balance (Dec 31 prior year) | $750,000 |
| Distribution period (age 80) | 20.2 |
| RMD | $37,129 |
Example 3: Age 85, $400,000 Balance
| Item | Value |
|---|---|
| Account balance (Dec 31 prior year) | $400,000 |
| Distribution period (age 85) | 16.0 |
| RMD | $25,000 |
RMD Penalty for Missing a Withdrawal
| Situation | Penalty |
|---|---|
| Missed RMD (not corrected) | 25% of the amount not withdrawn |
| Missed RMD (corrected within 2 years) | 10% of the amount not withdrawn |
| Took less than required | Penalty applies to the shortfall |
Under the SECURE 2.0 Act, the penalty was reduced from 50% to 25% (or 10% with timely correction). This is still substantial — don’t miss your RMD.
Strategies to Minimize RMD Tax Impact
| Strategy | How It Works |
|---|---|
| Roth conversions before 73 | Convert Traditional IRA money to Roth in lower-income years to reduce future RMDs |
| Qualified Charitable Distribution (QCD) | Donate up to $105,000 directly from IRA to charity — counts toward RMD but isn’t taxable |
| Spread withdrawals across the year | Monthly withdrawals instead of one lump sum for better tax planning |
| Reinvest in taxable accounts | Take the RMD but reinvest in a brokerage account for continued growth |
| Start withdrawals before 73 | Voluntary withdrawals in low-income years (e.g., early retirement) to reduce balances |
RMDs and Social Security
Your RMD counts as ordinary income, which can:
- Push you into a higher tax bracket
- Increase taxes on Social Security benefits
- Increase Medicare Part B and D premiums (IRMAA surcharges)
This makes pre-retirement Roth conversions especially valuable — they reduce future RMD-driven tax spikes.
Bottom Line
RMDs are unavoidable for traditional retirement accounts, but you can plan ahead to minimize their tax impact. The key strategies are: convert to Roth before RMDs begin, use QCDs for charitable giving, and coordinate withdrawals with Social Security for optimal tax efficiency.
For more on required minimum distribution rules, see our complete guide.
