Required Minimum Distributions RMDs Explained

Once you reach age 73 (for those born in 1951 or later), the IRS requires you to start withdrawing from most retirement accounts. Failure to take RMDs can trigger a 25% penalty. Learn the rules, deadlines, and strategies to minimize taxes.

Phase 4: Skill Building · 8 min read

📅 What Are RMDs?

A Required Minimum Distribution (RMD) is the minimum amount you must withdraw from your tax‑deferred retirement accounts (Traditional IRA, 401(k), 403(b), etc.) each year once you reach a certain age. The age was raised to 73 under the SECURE 2.0 Act for those born in 1951 or later. Roth IRAs do not have RMDs during the owner's lifetime.

Starting Age

If you were born in 1951 or later, you must start RMDs by April 1 of the year after you turn 73. For those born before, it may be 72 or 70½.

How It's Calculated

Your RMD = account balance as of Dec 31 of the prior year ÷ life expectancy factor from IRS Uniform Lifetime Table.

Penalty

If you fail to take the full RMD, the penalty is 25% of the amount not withdrawn. (It can be reduced to 10% if corrected promptly.)

Tax Impact

RMDs are taxed as ordinary income. Large RMDs can push you into higher tax brackets and increase Medicare premiums (IRMAA).

Interactive: RMD Calculator

Estimate your RMD for a given age and account balance. See the tax impact based on your estimated tax rate.

Adjust the values and click the button.

The IRS Uniform Lifetime Table factors are updated periodically. This calculator uses the 2024 factors. Always consult a tax professional for your specific situation.

📝 Test your knowledge: RMDs

1. At what age do RMDs generally start for someone born in 1951 or later?
70½
72
73
75
2. Which retirement account is NOT subject to RMDs during the owner's lifetime?
Traditional IRA
401(k)
Roth IRA
403(b)
3. The penalty for failing to take a full RMD is:
10%
25%
50%
No penalty
4. RMDs are taxed as:
Capital gains
Ordinary income
Tax‑free
Not taxed
5. You can delay your first RMD until:
December 31 of the year you turn 73
April 1 of the year after you turn 73
Your 75th birthday
You cannot delay

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