When Do I Have To Start Taking Money Out Of My IRA?Required Minimum Distributions, Explained Plainly.
At 73, the IRS starts requiring yearly withdrawals from most retirement accounts. Knowing the dates, the math and the penalty lets you plan that income on your own terms.
The Short Answer
You generally must start required minimum distributions from traditional, SEP and SIMPLE IRAs and workplace plans such as 401(k)s at age 73. The first is due by April 1 of the year after you turn 73, then each December 31. Roth IRAs need none while you are alive. Missing one can cost a 25% excise tax.
Source: IRS.gov
Three Numbers The IRS Sets
- 73
- The age when required minimum distributions generally begin for IRA and retirement plan owners.
- 26.5
- The IRS divisor at age 73 on the Uniform Lifetime Table. Last year-end balance ÷ 26.5 = your RMD.
- 25%
- Excise tax on an RMD you miss, reduced to 10% if you correct it within two years.
The RMD Calendar
From Your First Required Year To Every Year After
The IRS calendar for an IRA owner, from the first age charitable distributions are allowed to the yearly deadline that follows.
- Age 70½Charity Gifts From IRA Allowed
- Age 73First RMD Year
- April 1First RMD Due, Year After 73
- December 31Each Later RMD Due
Two In One Year
Wait until April 1 for your first RMD and the second is due by December 31 of the same year, so both count as income in one tax year.
Last Year’s Balance Sets It
Each RMD uses the account balance on December 31 of the year before, divided by the IRS factor for your age.
At What Age Do Required Minimum Distributions Start?
The IRS says you generally must start taking withdrawals from traditional, SEP and SIMPLE IRAs and from workplace retirement plans when you reach age 73. The age has moved in recent years: it was 70½ for people who reached that age before 2020, then 72 for the tax years 2020 through 2022, and the IRS now applies 73 to anyone who reaches 72 after December 31, 2022.
Your first RMD is for the year you turn 73. You can delay that first withdrawal until April 1 of the next year, and every RMD after it is due by December 31.
Which Accounts Have Required Minimum Distributions?
The rules cover traditional IRAs, SEP IRAs, SIMPLE IRAs, 401(k) plans, 403(b) plans, 457(b) plans, profit sharing plans and other defined contribution plans. Roth IRAs and designated Roth accounts in a 401(k) or 403(b) need no withdrawals while the owner is alive, though beneficiaries who inherit them do follow RMD rules.
If you own several IRAs, you figure each RMD separately but can take the total from one IRA or several. A 401(k) or 457(b) works differently: each plan’s RMD comes out of that plan.
How Is My RMD Calculated?
Divide the account balance on December 31 of last year by the distribution period for your age in the IRS Uniform Lifetime Table. Most owners use that table; a different one applies if your spouse is your sole beneficiary and more than 10 years younger.
The divisor shrinks as you age, so the required share grows. At 73 it is 26.5, at 75 it is 24.6, at 80 it is 20.2 and at 85 it is 16.0. For example, a $500,000 balance at the end of last year means an RMD of about $18,868 at 73 and about $24,752 at 80 on the same balance. You can always withdraw more than the minimum.
What Happens If I Miss An RMD?
The amount you failed to withdraw may be subject to a 25% excise tax, reported on Form 5329 with your federal return for that year. If you correct the shortfall within two years, the tax drops to 10%.
The IRS can also waive the penalty if the shortfall came from reasonable error and you are taking reasonable steps to fix it. You file Form 5329 and attach a letter of explanation. Mark the December 31 deadline every year, and the April 1 deadline in the year after you turn 73.
How Do RMDs Affect My Taxes And Medicare Premiums?
RMDs count as taxable income, except any part that was already taxed or that can come out tax-free, such as qualified Roth distributions. That income stacks on top of Social Security, where the IRS adds one-half of your benefits to your other income to decide how much of your benefit is taxable. Medicare.gov also notes that the Part B premium can be higher depending on your income.
So the years before 73 matter. Which account you draw from, and when, changes the tax picture for years. Maartin plans that order alongside your CPA, who handles the tax side; read more about tax-efficient retirement income.
Can I Give My RMD To Charity?
Yes, through a qualified charitable distribution, or QCD. You must be at least 70½, and the money must go directly from your IRA trustee to an organization eligible to receive tax-deductible contributions. A QCD counts toward your RMD, and for 2025 the IRS lists a maximum annual exclusion of $108,000 per person.
Because a QCD is generally nontaxable, it can satisfy the requirement without adding that amount to your income. You also need the same written acknowledgment from the charity that a deductible gift would require, so let your CPA and the charity confirm the details well before year-end.
What Happens To An IRA After The Owner Dies?
For owners who die after December 31, 2019, the SECURE Act generally requires the entire account to be paid out within ten years. Exceptions apply for a surviving spouse, a minor child, a disabled or chronically ill person, and someone not more than ten years younger than the owner. The 10-year rule applies whether the owner dies before, on or after the date RMDs had to begin.
For heirs, that packs the taxable withdrawals into a decade. If leaving money to children or grandchildren is part of your plan, Maartin can show how legacy planning with life insurance and beneficiary choices fits beside your IRA, working with your attorney and CPA.
Next Step
Talk It Through
A private conversation with Maartin about how this fits your own plan. In person on Arlington Avenue, by Zoom or by phone.
Book A Retirement Review Or call 951.774.0866Questions
Common Questions
Do I have to take an RMD from my Roth IRA?
Not during your lifetime. The IRS doesn’t require withdrawals from Roth IRAs or designated Roth accounts while the owner is alive. Beneficiaries who inherit a Roth account follow RMD rules.
Can I take more than my RMD?
Yes. The RMD is a minimum. Extra withdrawals in one year don’t count toward a future year’s RMD, and RMD amounts can’t be rolled over into another tax-deferred account.
Do RMDs apply to my 401(k) if I still work there?
If your plan allows it and you don’t own 5% or more of the business, you can delay RMDs from that plan until the year you retire. RMDs from your IRAs still start at 73, even while you work.
Does buying an annuity in my IRA change my RMD?
Special rules may apply. The IRS lets you combine the annuity contract’s value with the rest of the IRA balance and reduce the RMD by the annuity payments you received. Your CPA can confirm how it works for your accounts.
Who is responsible if my RMD is calculated wrong?
You are. Your IRA custodian or plan administrator may calculate the RMD, but the IRS says the account owner is ultimately responsible for taking the correct amount.
Sources
- RMDs generally start at age 73 for traditional, SEP and SIMPLE IRAs and retirement plan accounts; first due April 1 following year; later by December 31
- Age history: 70½ before 2020, 72 for 2020-2022, 73 if you reach 72 after December 31, 2022
- Separate IRA calculations but total from one or more; 401(k)/457(b) separately; custodian may calculate but owner responsible
- Social Security taxation adds one-half of benefits to other income
- Part B premium can be higher depending on income
Please Note
Education, not advice. MJR Financial & Insurance Services does not give tax, legal or Social Security advice; please consult your own professionals.
Turning 73 Soon?
Plan The Withdrawals
Before They’re Required.
Maartin maps which account to draw from and when, alongside your CPA, so your RMDs fit the income plan.
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