Tax deferral has an end date
RMDs start the withdrawals.
All tracks and lessons
Retirement accounts0/9
401(k) basics: don’t leave free money behindIRAs: your own retirement accountRoth vs. Traditional IRA: which is right for you?The backdoor Roth IRAThe HSA: the most tax-friendly account you're not usingSocial Security: when to claimThe 4% rule and safe withdrawalsRequired minimum distributions (RMDs)Early withdrawals and the 72(t) exception
Required minimum distributions (RMDs)
Most pre-tax retirement accounts require withdrawals to start at 73 — rising to 75 for people who turn 74 after 2032.
In this lesson you will
- Know the current RMD ages
- Identify which accounts have RMDs
- Calculate an RMD from a balance and factor
Pre-tax retirement accounts let money grow without yearly tax, but not forever. Required minimum distributions (RMDs) are the minimum amounts the IRS requires you to withdraw each year once you reach a set age.
The age
Under the SECURE 2.0 Act, the RMD age is 73 for people who turn 72 after 2022 and 73 before 2033. For people who turn 74 after 31 December 2032, it rises to 75 (IRS). Your first RMD can be delayed until 1 April of the following year, but then two RMDs fall in the same year.
Which accounts
- Traditional IRAs, SEP and SIMPLE IRAs.
- Most workplace plans such as 401(k) and 403(b) — with an exception in some plans if you still work there.
- Roth IRAs do not require withdrawals during the owner’s lifetime.
How the amount is set
Generally, the account balance at the end of the previous year is divided by a life-expectancy factor from IRS tables. The factor shrinks with age, so the required percentage rises.
Missing one
Missing an RMD can trigger an excise tax on the amount not withdrawn. Many providers will calculate and automate RMDs. Not tax advice — rules and limits change; check IRS guidance or a tax professional.
By the GetGuac team · Editorial policy
Three ideas to keep
Roth IRAs are different
No lifetime RMDs for the owner.
Delaying the first can double up
Two RMDs in one year.
Do it in 4 steps
Find your RMD age
By birth year.
List accounts with RMDs
IRAs and workplace plans.
Ask providers to automate
Most will.
Plan the tax
RMDs are generally taxable income.
Calculating one RMD
Illustrative: prior year-end balance $400,000 and a life-expectancy factor of 26.5.
| Item | Value |
|---|---|
| Prior year-end balance | $400,000 |
| Factor (illustrative) | 26.5 |
| RMD for the year | about $15,094 |
| As a percentage | about 3.8% |
$400,000 ÷ 26.5 ≈ $15,094. Use the IRS table for your actual factor.
Where this usually goes wrong
- Missing the first deadline
- Taking two RMDs in one year without planning the tax
- Assuming Roth IRAs require withdrawals
Using your birth year, write down your RMD age.
Tools and guides for this lesson
Quick quiz
1. Current RMD age for most people turning 73 before 2033?
2. Do Roth IRAs require withdrawals in the owner’s lifetime?
3. An RMD is generally calculated as…
0 of 3 answered
Puzzle
Prior year-end balance $250,000, factor 25.0. What is the RMD?
Show the answer
$10,000
$250,000 ÷ 25 = $10,000.