What an RMD is
A required minimum distribution is the smallest amount you must withdraw each year from a tax-deferred retirement account once you reach the required age. The IRS applies the rules to traditional, SEP and SIMPLE IRAs and to employer plans: 401(k), 403(b), governmental 457(b) and profit-sharing plans. Roth IRAs and designated Roth accounts in employer plans have no RMDs while the owner is alive. Withdrawals are ordinary income in the year taken, which is why the amount and its timing matter for the tax bracket, as federal income tax brackets 2026 lays out.
When: 73, April 1, December 31
- The first RMD is for the year you reach 73. You may delay taking it until April 1 of the following year, the required beginning date.
- Every later RMD is due by December 31 of its year. Delaying the first one therefore means two taxable distributions in the second year, which is the usual reason not to delay.
- Still working. A participant in a workplace plan who is still employed may delay RMDs from that employer's plan until the year of retirement, unless they own 5 percent or more of the business. IRAs and old employers' plans are not covered by the exception.
- Which age applies. Publication 590-B: if you reached 72 after December 31, 2022, the age is 73; earlier cohorts had 72 or 70½.
The Uniform Lifetime Table
Publication 590-B's Table III applies to unmarried owners, married owners whose spouse is not more than 10 years younger, and married owners whose spouse is not the sole beneficiary. The factor is divided into the prior year-end balance; the last column shows the same thing as a percentage of the balance.
| Age in the distribution year | Factor (applicable denominator) | RMD as a share of the balance | RMD on $500,000 |
|---|---|---|---|
| 73 | 26.5 | 3.77% | $18,868 |
| 74 | 25.5 | 3.92% | $19,608 |
| 75 | 24.6 | 4.07% | $20,325 |
| 76 | 23.7 | 4.22% | $21,097 |
| 77 | 22.9 | 4.37% | $21,834 |
| 78 | 22 | 4.55% | $22,727 |
| 79 | 21.1 | 4.74% | $23,697 |
| 80 | 20.2 | 4.95% | $24,752 |
| 81 | 19.4 | 5.15% | $25,773 |
| 82 | 18.5 | 5.41% | $27,027 |
| 83 | 17.7 | 5.65% | $28,249 |
| 84 | 16.8 | 5.95% | $29,762 |
| 85 | 16 | 6.25% | $31,250 |
| 90 | 12.2 | 8.20% | $40,984 |
| 95 | 8.9 | 11.24% | $56,180 |
| 100 | 6.4 | 15.63% | $78,125 |
The share rises every year: about 3.77% of the balance at 73, 4.95% at 80, 8.20% at 90. Because the balance also changes with markets and with the withdrawals themselves, the dollar amount is recomputed each year from scratch. A spouse more than 10 years younger who is the sole beneficiary switches the owner to Table II, the Joint Life and Last Survivor table, with a larger factor and a smaller RMD.
One account over a decade
An owner turns 73 with $500,000 in a traditional IRA at the previous year end. Assuming the balance earns 5 percent a year after each withdrawal, which is an illustration and not a forecast:
| Age | Balance at prior year end | Factor | RMD |
|---|---|---|---|
| 73 | $500,000 | 26.5 | $18,868 |
| 74 | $505,189 | 25.5 | $19,811 |
| 75 | $509,646 | 24.6 | $20,717 |
| 76 | $513,375 | 23.7 | $21,661 |
| 77 | $516,300 | 22.9 | $22,546 |
| 78 | $518,441 | 22 | $23,566 |
| 79 | $519,620 | 21.1 | $24,627 |
| 80 | $519,743 | 20.2 | $25,730 |
| 81 | $518,714 | 19.4 | $26,738 |
| 82 | $516,575 | 18.5 | $27,923 |
The retirement savings calculator projects the balance that will be sitting in the account at 73, and the 401(k) calculator the contributions that build it; the guide 401(k) vs IRA vs Roth IRA covers why money moved to a Roth account before 73 escapes this table entirely.
Other rules worth knowing
- Aggregation. IRA RMDs are computed per account but may be taken from any one or more IRAs; 401(k) and 457(b) RMDs must come from each plan separately.
- The penalty. An excise tax of 25 percent of any shortfall, reduced to 10 percent if corrected within two years, on top of the income tax still due when the money comes out.
- Charity. Publication 590-B notes that a qualified charitable distribution, paid directly from an IRA to a qualifying charity, counts toward the RMD and is excluded from income within the annual limit.
- No rollovers. Amounts that must be distributed in a year are not eligible for rollover; the RMD comes out first.
- Inherited accounts follow separate beneficiary rules, including the 10-year rule for most non-spouse heirs, which are outside this guide.
This guide follows the IRS FAQ page and Publication 590-B for 2025 returns, including its 2026 instructions for using the tables. The plan administrator or IRA custodian computes the figure for a specific account, and the owner is responsible for taking it.
Frequently asked questions
At what age do required minimum distributions start?
Age 73. The IRS says you generally must start taking withdrawals from traditional IRAs, SEP and SIMPLE IRAs and employer retirement plans when you reach 73, with the first one allowed as late as April 1 of the following year and every later one due by December 31. Publication 590-B puts it the same way: if you reach age 72 after December 31, 2022, you must begin receiving required minimum distributions by April 1 of the year following the year you reach 73.
How is the RMD calculated?
Divide the account balance on December 31 of the previous year by the life expectancy factor for your age from the IRS Uniform Lifetime Table in Publication 590-B. At 73 the factor is 26.5, so a $500,000 balance requires $18,868; at 80 it is 20.2. If your spouse is the sole beneficiary and more than 10 years younger, the Joint Life table with a larger factor applies instead.
Do Roth accounts have RMDs?
Not while the owner is alive. The IRS states that the RMD rules do not apply to Roth IRAs or designated Roth accounts in a 401(k) or similar plan during the owner's lifetime. Beneficiaries who inherit a Roth account do have distribution requirements.
What is the penalty for missing an RMD?
An excise tax of 25 percent of the amount not taken, reduced to 10 percent if the shortfall is corrected within two years, per the IRS FAQ. The missed amount is still taxable income when withdrawn.
Can I take all my RMDs from one account?
For IRAs, yes: the IRS says you calculate the RMD for each IRA separately but may take the total from one or more of them. For 401(k) and 457(b) plans each plan's RMD must be taken from that plan. If you are still working past 73 and do not own 5 percent of the employer, the plan at that employer can wait until the year you retire.
Sources
- IRS: Retirement plan and IRA required minimum distributions FAQs (age 73; first RMD by April 1 of the following year, then December 31; the still-working exception except for 5 percent owners; accounts subject and Roth accounts exempt during life; prior December 31 balance divided by the Table III factor, Table II when the spouse is more than 10 years younger; IRA aggregation and separate plan RMDs; the 25 percent excise tax, 10 percent if corrected within two years)
- IRS Publication 590-B (2025), Distributions from Individual Retirement Arrangements (the required beginning date; Table III, the Uniform Lifetime Table, in Appendix B; Roth IRA owners need not take distributions; a qualified charitable distribution counts toward the RMD)