Christian BrinkleyLicensed agent, NC Life & Health · Updated October 5, 2026 · 3 min read
If you have money in a traditional IRA or a 401(k), you can't leave it there forever. At a certain age, the IRS requires you to start taking some out every year, and those withdrawals are taxed as income. They're called required minimum distributions, or RMDs. Here's when they start and what to watch for.
When they start
Your RMD age depends on the year you were born:
- Born 1951 through 1959: RMDs start at 73.
- Born 1960 or later: RMDs start at 75.
Your first RMD is due by April 1 of the year after you reach that age. Every one after that is due by December 31. Here's the catch: if you wait until April for the first one, you'll take two in the same calendar year, and both count as income that year.
Which accounts have them
- Traditional IRAs, SEP IRAs, and SIMPLE IRAs: yes.
- 401(k), 403(b), and similar workplace plans: yes, with one exception below.
- Roth IRAs: no, not while the original owner is alive.
- Roth 401(k) and Roth 403(b) accounts: no, starting in 2024.
The exception: if you're still working past your RMD age and you don't own 5% or more of the company, your current employer's plan may let you wait until you retire. That doesn't apply to IRAs.
Inherited accounts follow different rules, often a 10-year window. If you've inherited an IRA, get help with that one specifically.
How the amount is figured
Take each account's balance as of December 31 of last year. Divide it by a life expectancy number from an IRS table. Most people use the Uniform Lifetime Table. The factor gets smaller each year, so the share you have to take gets a little bigger as you get older.
If you have several traditional IRAs, you figure the RMD for each one, but you can take the total from any of them. Workplace plans like 401(k)s usually have to be handled one plan at a time.
You can always take more than the minimum. You just can't take less.
If you miss one
The penalty is a 25% excise tax on the amount you should have taken and didn't. If you catch it and fix it within the correction window, generally about two years, it drops to 10%. It's worth setting a reminder. Many custodians will calculate the amount and even send it automatically if you ask.
Questions people ask me about this
Do I have to spend my RMD?
No. You have to take it out of the retirement account and pay the tax. After that, you can save it, invest it in a regular account, or spend it.
Can I have taxes withheld from my RMD?
Yes. Most custodians let you choose federal and state withholding on the distribution, which can save you from making estimated payments.
I turned 73 this year. Is my first RMD due by December 31?
You can wait until April 1 of next year for the first one. If you do, you'll also owe next year's RMD by December 31, so two will count as income in the same year.
Can you tell me how much to take?
Your custodian or tax professional should confirm your exact amount. I can walk through how the income might affect your Medicare premiums, and point you to the advisor I work with if you want planning help.