How Required Minimum Distributions (RMDs) Work

Published October 12, 2026

Free tool: RMD Calculator→

Traditional IRAs and 401(k)s let your savings grow tax-deferred for decades, but not forever. Once you reach a certain age, the IRS requires you to withdraw a minimum amount every year, called a required minimum distribution (RMD), and pay income tax on it. This guide explains when RMDs start and how they're calculated, using the free RMD Calculator.

When RMDs start

Under the SECURE 2.0 Act:

• Born 1951 to 1959: RMDs start at age 73.
• Born 1960 or later: RMDs start at age 75.

Your first RMD is due by April 1 of the year after you reach that age. Every later RMD is due by December 31. Delaying the first one means taking two in the same year, which can push you into a higher tax bracket.

How the amount is calculated

RMD = account balance on December 31 of last year ÷ distribution period

The distribution period comes from the IRS Uniform Lifetime Table and shrinks as you age: 26.5 at 73, 24.6 at 75, 20.2 at 80, 16.0 at 85 and 12.2 at 90. If your spouse is more than 10 years younger and your sole beneficiary, a different table gives a smaller RMD.

Example: born in 1953, you turn 73 in 2026. With $500,000 in your IRA at the end of 2025:

$500,000 ÷ 26.5 = $18,867.92 to withdraw for 2026.

RMDs rise as you age

Because the divisor falls each year, the share you must withdraw rises, from about 3.8% at 73 to over 8% at 90. If the account earns 5% a year, the example's RMDs grow to about $25,730 at 80, $31,372 at 85 and $36,597 at 90, adding up to about $766,206 over 25 years.

Which accounts have RMDs

• Traditional, SEP and SIMPLE IRAs, and 401(k), 403(b) and 457(b) plans have RMDs.
• Roth IRAs have no RMDs for the original owner, and since 2024 neither do Roth 401(k)s.
• IRAs can be combined: you calculate each one's RMD but can take the total from any of them. 401(k)s must each pay their own RMD.
• If you're still working, you can usually delay RMDs from your current employer's 401(k) unless you own 5% or more of the company.

Missing an RMD

The penalty is 25% of the amount you should have withdrawn, cut to 10% if you correct it promptly. Many custodians can set up automatic withdrawals so you don't miss one.

Ways to manage RMDs

• Qualified charitable distributions (QCDs) let you give from an IRA directly to charity; they count toward your RMD and aren't taxed.
• Roth conversions before RMDs start can shrink future RMDs, though you pay tax on the conversion.
• Spread withdrawals across the year, or take them when markets are up.

How to use the RMD Calculator

1. Open the RMD Calculator.
2. Enter your year of birth and the distribution year.
3. Enter your balance on December 31 of last year, from your year-end statement.
4. Enter an expected return to project future RMDs.
5. Read the results: this year's RMD, your age, the distribution period, the age your RMDs start and the projected total, with charts of future RMDs and the balance after withdrawals, plus a full schedule.

Frequently asked questions

At what age do I have to take RMDs?

At 73 if you were born from 1951 to 1959, and at 75 if you were born in 1960 or later.

How do I calculate my RMD?

Divide last December 31's balance by the distribution period for your age from the IRS Uniform Lifetime Table. $500,000 at age 73 is $500,000 ÷ 26.5 = $18,867.92.

Do Roth IRAs have RMDs?

Not for the original owner. Inherited Roth IRAs have their own withdrawal rules.