Who takes RMDs
Traditional IRA and 401(k) account holders starting at age 73 (age 75 for those born in 1960 or later). Roth IRAs have no RMD during owner's life. Inherited IRAs (non-spouse) follow the 10-year rule post-SECURE. Workplace Roth accounts no longer require lifetime RMDs either, a recent alignment with Roth IRA treatment.
How the amount is calculated
Each account's prior December 31 balance divided by your IRS life-expectancy factor produces that account's RMD. IRA RMDs can be aggregated and taken from any one IRA; 401(k) RMDs must come from each plan separately, a distinction that trips up people with old employer plans scattered behind them. Custodians calculate and report the figures, but responsibility for actually taking the money is yours.
First-year timing
The first RMD can be delayed to April 1 of the year after you turn 73. Doing so creates two RMDs in that year, most people don't defer for that reason. Two RMDs stacked in one year can inflate the taxable income enough to raise Medicare IRMAA premiums and push Social Security taxation, so the deferral usually only helps when the second year's income will be sharply lower.
The QCD alternative
From age 70½, IRA owners can send distributions directly to charity as qualified charitable distributions. QCDs count toward the RMD but never appear in income, which beats deducting the same gift, especially for the majority who take the standard deduction. The annual QCD limit is six figures generous and inflation-adjusted; the mechanics require the custodian to pay the charity directly, not reimburse you.
Inherited accounts and the still-working exception
Non-spouse beneficiaries under the 10-year rule may also owe annual RMDs during the window when the original owner had already started distributions, per the final IRS regulations, with the account fully drained by year ten either way. Separately, people still working past RMD age can defer RMDs from their current employer's 401(k) (not IRAs, not old plans) until retirement, provided they don't own more than 5% of the company.
Common questions
- What if I miss an RMD?
- The excise tax is 25% of the missed amount (reduced to 10% if corrected within 2 years). File Form 5329 with reasonable-cause waiver request.
- Can I take the whole RMD from one account?
- For IRAs, yes: total the RMDs across all your IRAs and withdraw from whichever you choose. Each 401(k) must distribute its own RMD separately.
- Can I donate my RMD instead of taking it as income?
- Yes, via a qualified charitable distribution paid directly from the IRA to the charity. It satisfies the RMD and stays out of your AGI, which also helps with Medicare premiums and Social Security taxation.
- Do RMDs apply to my Roth IRA?
- Not during your lifetime. Roth IRAs have no owner RMDs; beneficiaries who inherit them do face distribution rules.
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Related tax topics
Filing a Tax Extension
Form 4868 extends the filing deadline from April 15 to October 15, not payment. Estimate and pay what you owe by April 15 or penalties and interest accrue.
Quarterly Estimated Tax Payments
Quarterly estimates are due April 15, June 15, September 15, and January 15. Safe harbor is 90% of current-year or 100% of prior-year tax. Who has to pay.
Corporate Tax Extension
S-corps and partnerships file Form 7004 by March 15 for a September 15 extension. C-corps follow April 15 to October 15. Deadlines by entity and the K-1 impact.
Year-End Tax Planning
Roth conversions, tax-loss harvesting, RMDs, and Section 179 purchases must happen by December 31. IRA, HSA, and SEP contributions can wait until April.