Required Minimum Distributions (RMDs) Explained
Tax-deferred accounts don't stay tax-deferred forever. Starting at age 73 the IRS requires you to withdraw a minimum each year — and the penalty for missing it is steep.
Last updated: 2026-07-21
Accounts like a traditional 401(k) or traditional IRA let your money grow untaxed for decades. Eventually the IRS wants its share, so it requires you to start taking money out — and paying tax on it — through required minimum distributions, or RMDs.
When RMDs start
Under current law you must begin RMDs at age 73. Your first one can be delayed until April 1 of the year after you turn 73, but every year after that the deadline is December 31. Roth IRAs are exempt during the original owner's lifetime, which is a key reason some retirees favor Roth accounts.
How the amount is figured
Each year's RMD is your account balance at the end of the prior year divided by a life-expectancy factor from an IRS table. As you age the factor shrinks, so the required percentage of your balance rises over time. You can always withdraw more than the minimum — the RMD is a floor, not a ceiling.
- Applies to traditional IRAs, 401(k)s, 403(b)s, and similar pre-tax accounts.
- Roth IRAs have no RMDs for the original owner.
- The distribution is taxed as ordinary income in the year you take it.
Don't miss the deadline
The penalty for failing to take a full RMD is a 25% excise tax on the shortfall (reduced to 10% if corrected promptly). Many retirees manage RMDs by setting up automatic year-end withdrawals, or by planning Roth conversions in their 60s to shrink future RMDs before they begin.
Estimate your required withdrawal with the calculators below.