Understanding required minimum distributions
When RMDs start, how they're calculated, and how to manage the tax impact before they arrive.
What is a Required Minimum Distribution?
A Required Minimum Distribution is the minimum amount the IRS requires you to withdraw each year from most tax-deferred retirement accounts, such as Traditional IRAs and 401(k)s.
The idea is simple: these accounts received tax benefits on the way in, and at some point the IRS expects to collect taxes as money comes out.
While the rules themselves are straightforward, the timing and tax consequences often aren’t — especially when multiple accounts, pensions, Social Security, and other income sources are involved.
RMDs are not a suggestion. Missing or under‑withdrawing can result in significant IRS penalties, even if the mistake was unintentional.
When do RMDs begin?
For most people today, RMDs begin at age 73. If you were born in 1960 or later, your starting age will be 75. The specific start age depends on your year of birth and current tax law.
Your first RMD year
Your first RMD must be taken for the year you reach your required start age. However, you’re allowed to delay that first withdrawal until April 1 of the following year.
Delaying sounds helpful — but it can mean taking two taxable distributions in the same year.
Every year after
After your first RMD, all future RMDs must be completed by December 31 each year. There are no extensions.
How is your RMD amount calculated?
Each year’s RMD is based on two numbers: your account balance as of December 31 of the prior year, and a life expectancy factor from the IRS Uniform Lifetime Table. Divide one by the other. That’s your required withdrawal for the year.
Pat is 75 with a single Traditional IRA worth $500,000 at the end of last year. The IRS life expectancy factor for age 75 is 24.6.
That $20,325 is added to Pat’s other taxable income for the year — Social Security, any pension, and any other withdrawals taken.
Robin is 76 with two Traditional IRAs ($150,000 and $250,000) and a former employer’s 401(k) worth $200,000. The IRS factor at age 76 is 23.7.
The $16,878 IRA requirement can be taken from either IRA or split between them in any proportion — the IRS only cares that the combined total is met. The $8,439 from the 401(k) must come from that plan specifically and cannot be satisfied by an IRA withdrawal.
The IRS publishes a life expectancy factor for each age. A larger factor means a smaller required withdrawal; as the factor decreases each year, the percentage of your account that must be distributed gradually increases.
The table below is the Uniform Lifetime Table, used by most account owners. A separate table applies if your sole beneficiary is a spouse more than 10 years younger — that table produces larger factors and therefore smaller RMDs.
| Age | Factor | Age | Factor | Age | Factor |
|---|---|---|---|---|---|
| 72 | 27.4 | 82 | 18.5 | 92 | 11.1 |
| 73 | 26.5 | 83 | 17.7 | 93 | 10.5 |
| 74 | 25.5 | 84 | 16.8 | 94 | 9.9 |
| 75 | 24.6 | 85 | 16.0 | 95 | 9.4 |
| 76 | 23.7 | 86 | 15.2 | 96 | 8.9 |
| 77 | 22.9 | 87 | 14.4 | 97 | 8.4 |
| 78 | 22.0 | 88 | 13.7 | 98 | 7.9 |
| 79 | 21.1 | 89 | 12.9 | 99 | 7.5 |
| 80 | 20.2 | 90 | 12.2 | 100 | 7.1 |
| 81 | 19.4 | 91 | 11.6 |
Source: IRS Publication 590-B, Appendix B. These factors reflect the 2022 updated tables, which remain current. Consult IRS.gov or a tax professional to confirm current-year values.
The scenarios described are hypothetical and are intended solely to illustrate the types of financial planning services that may be provided. They do not represent the experience of any specific client. Actual client experiences and outcomes will vary depending on individual circumstances and it should not be interpreted as a guarantee of future results or client experience. Actual RMD amounts depend on prior-year account balances, account type, beneficiary designations, and applicable IRS tables. Multiple inherited accounts follow different aggregation rules. Consult a tax professional for your specific situation.
Ways to reduce the impact of RMDs
RMD rules apply to traditional tax‑deferred accounts, but with proactive planning the impact can often be reduced and, in some cases, eliminated.
RMD Estimator
Enter your account balance and age to see an estimated RMD schedule through age 90 — and how distributions layer with other income sources.
Approaching Retirement
RMDs are one of several decisions that shift in the years before and after you stop working. This page covers the full picture.
Learn more → ServiceRetirement Planning
How we model RMDs alongside Social Security, taxes, and portfolio withdrawals to build a year-by-year income picture.
Learn more → Planning ToolRMD Estimator
Enter your account balance and age to see an estimated distribution schedule and how it layers with other income sources.
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