What Are Required Minimum Distributions?

Which accounts can have RMDs?

Traditional IRAs, including traditional SEP and SIMPLE IRAs, and many employer retirement plans are subject to RMD rules. Employer plans can have different provisions, and certain participants may qualify to delay distributions while still working for the sponsoring employer. That exception is not a blanket exemption for all retirement accounts and generally does not postpone an owner's traditional IRA RMDs.

Roth IRAs do not have lifetime RMDs for the original owner. Under current law, designated Roth accounts in employer plans also do not require lifetime distributions for the original owner. Beneficiaries face separate rules, including for inherited Roth accounts. Verify how each account is classified before deciding no withdrawal is due.

Put the first year and later years on one calendar

The applicable starting age has changed under legislation and differs by birth cohort. Consult the IRS guidance using your date of birth, then confirm the required beginning date for your account. Many owners can delay their first RMD until April 1 of the following year, but that is a deadline option, not an automatic tax benefit.

Subsequent annual RMDs are generally due by December 31. Delaying the first payment can put the first and second required distributions into the same tax year. That may increase taxable income and affect other income-sensitive items. Compare the two-year tax consequences before choosing the later deadline.

Calculate and satisfy the requirement correctly

An owner's annual RMD generally uses the account's prior year-end balance and the applicable IRS life-expectancy factor. The appropriate table depends on circumstances, including certain spouse-beneficiary arrangements. Ask the custodian which inputs it used and confirm whether it calculates every account you own.

For an owner's traditional IRAs, calculate the RMD for each account; the permitted combined amount can generally be taken from one or more of those IRAs. Do not extend that rule to every account. Most employer-plan RMDs must be satisfied separately for each plan. An owner's 403(b) RMDs can generally be aggregated among that owner's 403(b) accounts, not with IRA or 401(k) obligations. Inherited accounts have additional restrictions. A withdrawal from the wrong account may not satisfy the obligation.

Taxes, shortfalls, and charitable coordination

• RMDs are generally taxable except to the extent an applicable basis or other exclusion applies. Confirm treatment if you have nondeductible IRA contributions.
• An RMD cannot be rolled over or converted to Roth. Coordinate required amounts before considering separate rollover or conversion transactions.
• Missing or underpaying an RMD can trigger an excise tax. Correction procedures and potential relief depend on the circumstances; seek qualified help promptly rather than assuming the custodian will resolve it.
• An eligible qualified charitable distribution from an IRA may satisfy some or all of an IRA RMD when completed properly. QCD eligibility and RMD starting rules are different; confirm both before processing a gift.

Common RMD questions