What is a required minimum distribution (RMD), and when do I have to start?

You cannot keep money in a pre-tax retirement account indefinitely. Once you reach your applicable age, the IRS generally requires you to start withdrawing a minimum amount each year, and the withdrawal is included in your taxable income except for any part that was already taxed (IRS, 2026).

The rules apply to traditional IRAs, SEP IRAs, SIMPLE IRAs, and employer plans such as 401(k), 403(b) and 457(b) plans. They do not apply to Roth IRAs or designated Roth accounts while the original owner is alive (IRS, 2026). You can always withdraw more than the minimum, but the extra does not count toward a future year's RMD (IRS, 2026).

Each year's amount is generally the prior December 31 account balance divided by a distribution period from the IRS Uniform Lifetime Table (Table III in IRS Publication 590-B, 2025). A different table applies in some situations, such as when your spouse is your only beneficiary and is more than 10 years younger. Your account custodian may calculate the figure, but you are responsible for taking the right amount on time (IRS, 2026).

The starting age depends on when you were born. Under the IRS final regulations published in 2024 (Internal Revenue Bulletin 2024-33):

• Born from 1951 through 1958: the applicable age is 73.
• Born in 1960 or later: the applicable age is 75.
• Born in 1959: the final regulations left this year open because the SECURE 2.0 Act is ambiguous for it, so check current IRS guidance for your situation.

Your first RMD is for the year you reach your applicable age, and you may delay it until April 1 of the following year. Later RMDs are due by December 31 each year. If you wait for April 1, you may take two RMDs in that second year, which could land in the same tax year (IRS, 2026). Participants in an employer plan may be able to wait until they retire, unless they own 5% or more of the business (IRS, 2026).

If you take less than the required amount, the shortfall may be subject to a 25% excise tax, or 10% if it is corrected within two years. The penalty may be waived in some cases of reasonable error (IRS, 2026).

For many people three to ten years from retirement, the question is less "what is an RMD?" and more "what will mine do to my taxes?" A large pre-tax balance may mean larger required withdrawals later, and those withdrawals count as income in the years they are taken. Several things can follow from that.

• Medicare premiums. RMD income counts toward the income Medicare looks at, usually from two years back, so it may push premiums into a higher bracket. We explain how that works in What is IRMAA, and could it raise my Medicare premiums?
• Roth conversions. The years after work ends and before RMDs begin can have lower taxable income, which is why they often get a look for conversions. A conversion creates a tax bill now and may reduce the pre-tax balance that future RMDs are based on. Whether it makes sense depends on your own numbers. See Should I do a Roth conversion in retirement?
• Timing and trade-offs. RMD amounts cannot be rolled over into another tax-deferred account (IRS, 2026), and none of these choices is right for everyone. Rules, ages and limits can change, so what applies to you depends on your birth year, your accounts and your tax situation.

This is education, not a recommendation for any one household.

RMD Planning is part of Signature Retirement. We review when your RMDs are likely to begin, which accounts they affect, and how they fit with your Roth conversion window and Medicare premiums. With Signature Retirement Continuum, RMDs are managed year by year alongside your tax planning. Both are described on our Financial Planning page.

This is analysis, not a promise. Tax-aware planning may involve trade-offs, rules change, and results vary with each person's situation. If you are not sure where you stand, the Retirement Picture Check is a ten-question place to start.

IRS, "Retirement topics: Required minimum distributions (RMDs)" (irs.gov/retirement-plans/plan-participant-employee/retirement-topics-required-minimum-distributions-rmds). IRS, "Retirement plan and IRA required minimum distributions FAQs" (irs.gov/retirement-plans/retirement-plan-and-ira-required-minimum-distributions-faqs). IRS, "RMD comparison chart (IRAs vs. defined contribution plans)" (irs.gov/retirement-plans/rmd-comparison-chart-iras-vs-defined-contribution-plans). IRS, "Publication 590-B (2025), Distributions from Individual Retirement Arrangements (IRAs)" (irs.gov/publications/p590b). IRS, "Internal Revenue Bulletin 2024-33," final required minimum distribution regulations (irs.gov/irb/2024-33_IRB). All were read on November 4, 2026. Tax rules and ages change, so check the current ones on irs.gov before you rely on them.