Key facts
- Individuals generally must start taking required minimum distributions (RMDs) from IRAs and retirement plans at age 73.
- RMDs are not required from Roth IRAs or Designated Roth accounts while the original owner is alive.
- Beneficiaries of Roth IRAs or Designated Roth accounts are subject to RMD rules.
- The RMD is calculated by dividing the prior year-end account balance by a distribution period from an IRS table.
- Withdrawals are generally included in taxable income, except for basis or tax-free portions.
- The first RMD for IRAs is due April 1 of the year after reaching age 73.
Individuals are generally required to begin withdrawing funds from their traditional IRAs, SIMPLE IRAs, SEP IRAs, and retirement plan accounts once they reach age 73. Roth IRAs and Designated Roth accounts within 401(k) or 403(b) plans are exempt from these required minimum distribution (RMD) rules for the original account owner, though beneficiaries are subject to them. The RMD amount is determined by dividing the account balance at the close of the preceding calendar year by a distribution period specified in the IRS's Uniform Lifetime Table, or a different table if the sole beneficiary is a spouse more than 10 years younger than the owner. Withdrawals are typically considered taxable income, unless they represent a return of basis or are tax-free distributions from designated Roth accounts. For IRAs, the first RMD is due by April 1 of the year following the year the owner turns 73. For 401(k)s and similar plans, the deadline is generally April 1 following the later of reaching age 73 or retiring, if the plan permits. In the initial year, two RMDs may be required: one by April 1 and another by December 31. Subsequent RMDs are due by December 31 annually.