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Understanding your Required Minimum Distribution (RMD) age is essential for avoiding IRS penalties and planning tax-efficient withdrawals in retirement. The RMD age now varies based on your birth year, and recent law changes, like SECURE Act 2.0 and the elimination of Roth 401(k) RMDs, make it even more important to know exactly when you must start taking distributions. This guide breaks down RMD rules by age, provides a clear RMD chart, and explains what to do to stay compliant and protect your retirement savings.
What is RMD?
An RMD, or Required Minimum Distribution, is the minimum amount of money that the IRS requires you to withdraw each year from certain retirement accounts once you reach a specific age. These rules ensure that the government eventually collects taxes on money that’s been growing tax-deferred for years.
RMDs apply to accounts like traditional 401(k)s, traditional IRAs, SEP IRAs, SIMPLE IRAs, and most employer-sponsored plans. They do not apply to Roth IRAs during the owner’s lifetime, and starting in 2024, they also do not apply to Roth 401(k)s.
Key Takeaways
- Required Minimum Distributions (RMDs) are mandatory withdrawals from retirement accounts starting at age 72
- The RMD age was increased from 70½ to 72 under the SECURE Act
- RMDs apply to Traditional IRAs, SEP IRAs, SIMPLE IRAs, 401(k), 403(b), 457(b), and profit-sharing plans
- To calculate RMD, divide your prior year’s account balance (Dec 31) by the IRS life expectancy factor
- Missing RMD deadlines can result in significant IRS penalties
- Special calculation rules apply for spouses more than 10 years younger and for inherited IRAs
What is the Age for RMD?
The current RMD starting age (as of 2025) is:
-
Age 73 for people born 1951–1959
-
Age 75 for people born in 1960 or later
If you don’t take your RMD on time, the IRS can impose a significant penalty, typically up to 25% of the amount you should have withdrawn (reduced to 10% if corrected quickly).
Earlier, the required minimum distribution (RMD) age was 70½ years. Then, under the SECURE Act of 2019 it changed so you must begin RMDs by the April 1 following the year you reach age 72.
Most recently, under the SECURE 2.0 Act (effective for those reaching the earlier age after December 31, 2022), you now must begin RMDs by the April 1 after you reach age 73 if you were born between 1951–1959. For those born 1960 or later, the RMD-begin age will increase further to age 75 (effective from 2033).
Also, note that starting in 2024, designated Roth account assets in employer-sponsored plans (e.g., Roth 401(k)s) are exempt from lifetime RMDs.
What are the Different Types of Retirement Plans That Have RMDs?
- Traditional IRA
- SIMPLE IRA
- SEP IRA
- 401(k) (traditional & Roth)
- 457(b) (traditional & Roth)
- 403(b) (traditional & Roth)
- Profit sharing plans
Calculating RMDs – Required Minimum Distributions
The Internal Revenue Service (IRS) has a worksheet prepared for taxpayers to calculate the RMD amount. Usually, the plan administrator or the account custodian calculates the RMD amount and report it to the IRS.
To calculate your RMD, all you have to do is divide your tax-deferred retirement account balance as of December 31 of last year by your life expectancy factor from the IRS Uniform Lifetime Table.
IRA Required Minimum Distribution Table
| Age of retiree | Distribution period (in years) |
|---|---|
| 72 | 27.4 |
| 73 | 26.5 |
| 74 | 25.5 |
| 75 | 24.6 |
| 76 | 23.7 |
| 77 | 22.9 |
| 78 | 22.0 |
| 79 | 21.1 |
| 80 | 20.2 |
| 81 | 19.4 |
| 82 | 18.5 |
| 83 | 17.7 |
| 84 | 16.8 |
| 85 | 16.0 |
| 86 | 15.2 |
| 87 | 14.4 |
| 88 | 13.7 |
| 89 | 12.9 |
| 90 | 12.2 |
| 91 | 11.5 |
| 92 | 10.8 |
| 93 | 10.1 |
| 94 | 9.5 |
| 95 | 8.9 |
| 96 | 8.4 |
| 97 | 7.8 |
| 98 | 7.3 |
| 99 | 6.8 |
| 100 | 6.4 |
| 101 | 6.0 |
| 102 | 5.6 |
| 103 | 5.2 |
| 104 | 4.9 |
| 105 | 4.6 |
| 106 | 4.3 |
| 107 | 4.1 |
| 108 | 3.9 |
| 109 | 3.7 |
| 110 | 3.5 |
| 111 | 3.4 |
| 112 | 3.3 |
| 113 | 3.1 |
| 114 | 3.0 |
| 115 | 2.9 |
| 116 | 2.8 |
| 117 | 2.7 |
| 118 | 2.5 |
| 119 | 2.3 |
| 120 and older | 2.0 |
How To Calculate RMD
Required Minimum Distributions (RMDs) are calculated based on an individual’s age and the balance of their retirement account, typically using IRS-approved life expectancy tables to determine the annual distribution amount. You can
The RMD calculation is a 3-step process
- Note down the balance of your account as of December 31 of the previous year.
- Find your life expectancy factor on the IRS Uniform Lifetime Table. Look for the factor that is corresponding to your age on the birthday of the current year. This factor number for most people is between 27.4 and 1.9. As your age increases, the factor number decreases.
- To find the RMD, divide your account balance by the factor number.
Required Minimum Distribution (RMD): An Example
Steve is 74 yrs old. It’s nearing April, and on October 1, Steve will be 75. His IRA is worth $275,000. As of December 31 of the previous year, his account balance was $225,000. The distribution factor from the relevant IRS table for age 75 is 22.9. So, let’s calculate Steve’s RMD.
RMD = $225,000 ÷ 22.9 = $9835.32
So, Steve needs to withdraw at least $9835.32.
If Steve has multiple IRAs, he must calculate RMD separately for each account. Depending on the types of accounts Steve has, he may have to take RMDs separately from each account instead of taking all RMDs from one account.
The IRS has different calculation tables for different situations. For example, there will be a different calculation table if the account holder’s spouse is the account’s only beneficiary and is more than 10 years younger than the account holder. For married couples with age differences, the IRS has a separate table called the Joint Life Expectancy Table. In this table, your life expectancy factor is based on both spouse’s ages.
For example, let’s say Janet is 75 and her husband Brad is age 64. Janet’s account balance was $100,000 as of December 31 of last year. According to the IRS Joint Life Expectancy Table, their factor is 23.6.
When the account balance is divided by the life expectancy factor, Janet’s RMD is $4,237.29.
How to Delay RMD Deadlines
You can delay your first Required Minimum Distribution (RMD) from a traditional IRA or 401(k) until April 1 of the year after you reach your RMD age, which is 73 for most people (and 75 for those born in 1960 or later). If you decide to wait, you’ll need to take two RMDs in that year—one by April 1 for the previous year and one by December 31 for the current year—which could increase your taxable income for that year.
If you are still working and do not own 5% or more of the business sponsoring your current employer’s plan, you may be able to delay RMDs from that employer’s retirement plan until after you retire; this rule does not apply to IRAs or previous employer plans.
Missing an RMD deadline can result in a penalty of up to 25% of the amount not withdrawn, which can be reduced to 10% if corrected in a timely manner.
Roth IRAs do not require RMDs during the original owner’s lifetime, but beneficiaries must follow RMD rules after inheritance.
What Happens If You Don’t Take RMDs?
If you don’t take your Required Minimum Distributions (RMDs) by the IRS deadline, you could face a significant tax penalty. For 2023 and beyond, the penalty is 25% of the amount you failed to withdraw. If you correct the mistake within two years, the penalty may be reduced to 10%.
For example, if your RMD was $4,000 and you missed it, the IRS could impose a $1,000 penalty. To request a waiver or reduction of the penalty, you should take the missed RMD as soon as possible and file IRS Form 5329 with a letter explaining the reasonable cause for missing the deadline.
The penalty used to be 50%, so recent regulatory changes have made this less severe, yet it remains substantial. Missing RMDs can increase your tax bill and complicate your retirement planning. Always monitor RMD deadlines and amounts each year to avoid these penalties.
Important Dates for Taking RMDs
The most important dates for taking Required Minimum Distributions (RMDs) are:
- April 1 of the year after you reach RMD age: You must take your first RMD by April 1 of the year after you turn 73 (or 75 if born in 1960 or later).
- December 31 of each subsequent year: Every following year, RMDs must be taken by December 31.
- If you delay your first RMD until April 1: You will have to take two RMDs in that year—one for the previous year (by April 1) and one for the current year (by December 31).
Failing to take RMDs by these deadlines leads to significant IRS penalties. Roth IRAs do not require RMDs during the original account holder’s lifetime.
RMDs and Inherited IRAs: Special Case
If you inherit an IRA, you may also be subject to RMDs. After the account owner’s death, the nature of the relationship you had with the deceased will decide the type of RMD you’ll face. For example, RMD rules may vary depending on whether you are a minor child, surviving spouse, or a disabled individual.
If you inherit an IRA from an account holder
- Who died prior to January 1, 2020, you’ll use your IRS Single Life Table to calculate your RMD
- Who died after December 31, 2019, you’ll need to follow the RMD rules established by the SECURE Act, which clearly distinguishes between designated beneficiaries, eligible designated beneficiaries, and non-designated beneficiaries. Depending on which category you belong to, the calculation and timeframe of your RMD may vary.
Unsure how RMDs affect your retirement savings? Get expert guidance to avoid penalties and make the most of your withdrawals
FAQs related to Required Minimum Distributions
What happens if a person does not take an RMD by the required deadline?
If an account owner does not withdraw the RMD, fails to withdraw by the required deadline or doesn’t withdraw the full RMD amount, the RMD amount that’s not withdrawn is taxed at 50%.
Can an account owner withdraw more than the RMD?
Yes. The account holder can take more than the RMD without penalty. However, the withdrawal amount will be taxed the same way the RMD is taxed.
Can a distribution in excess of the RMD for one year be applied to the RMD for a future year?
No. An excess of the RMD for one year cannot be applied to a future year.
Can the penalty for not taking the full RMD to be waived?
Yes. The penalty can be waived if the account holder is able to establish that the withdrawal shortfall was due to a reasonable error and that steps were taken to rectify the error.
Are Roth IRAs subject to RMDs?
Roth IRAs are not subject to RMDs. If you don’t need the money, you can let the money in the account grow untouched and tax-free.
Can RMD amounts be rolled over into another tax-deferred account?
The IRS rules prohibit investing your RMD into another tax-advantaged retirement account. However, you can consider converting the remaining portion of your traditional IRA assets to a Roth IRA, but this may mean paying more taxes.
At What Age RMD Stop?
RMDs (Required Minimum Distributions) typically stop at age 72, based on current IRS regulations. This age was increased from 70½ through the Setting Every Community Up for Retirement Enhancement (SECURE) Act, passed in 2019.
