RMDs: When the Tax-Later Bucket Says "Now"

The story: Grace gets the RMD letter

Grace reads a letter saying required withdrawals from an IRA start soon, and Walt explains how the amount is figured and the first-year trap.

1. Narrator: Grace gets a letter from the company that holds Grace’s IRA. Required withdrawals start soon.
2. Grace: Required? I don’t even need the money yet.
3. Narrator: The IRS let this money grow for years without tax. After a set age, it requires a minimum withdrawal each year.
4. Walt: The amount is last December 31’s balance divided by a factor from an IRS table.
5. Walt: And watch the first year. If you wait until the next spring, you take two in one year.
6. Grace: Then I’ll mark my start year and my deadline on the calendar now.

What you’ll learn

1. When RMDs start

   The start age is set by law and depends on your birth year: 73 (born 1951–1959) or 75 (born 1960 or later). Your first deadline is called the required beginning date.

2. How the amount is figured

   Take last year-end’s balance and divide it by your factor from the IRS life-expectancy table. The factor gets smaller as you age, so the share you must take rises each year.

   Example: a $300,000 balance ÷ an example factor of 25 = $12,000 to take out this year.

3. Which accounts

   Traditional, SEP and SIMPLE IRAs and workplace plans like 401(k)s need RMDs. Roth IRAs don’t, for the owner. If your only beneficiary is a spouse much younger than you, a different IRS table gives a smaller RMD.

4. The first-year option and the penalty

   You can delay your first RMD until the next spring, but then you take two in one year, which can raise your tax. Missing an RMD brings a penalty, which is lower if you fix it quickly.

Key words

required minimum distribution

the yearly amount you must take out

Also called: RMD

distribution period

the IRS factor you divide by

required beginning date

the deadline for your first RMD

Common questions

Do I have to spend my RMD?

No. You must take it out and pay the tax, but you can save or invest what’s left in a regular account.

Does my workplace Roth account need RMDs?

The rules for workplace Roth accounts have changed in recent years. The IRS link on the fact card has the current rule.

Remember this

Required. Minimum. Distribution. Know your start year.

Try it: Mark your RMD start year

1. Try the public RMD calculator with your balance.
2. Find your RMD start year on the fact card, and write it and your first deadline on a paper or phone calendar.
3. Add your expected RMD to your list of income for that year.

No account: use the public RMD calculator, and write the dates from the Live card on a paper or phone calendar.

Live facts

Numbers that change over time, with when they were last checked and where they come from.

• Required withdrawals start at

  73 (born 1951–1959) or 75 (born 1960 or later)

  When required minimum distributions from traditional retirement accounts begin, by birth year

  As of February 8, 2026

  Source: IRS.gov(opens in a new tab)

• IRS life-expectancy tables for RMDs

  Source: IRS.gov (Publication 590-B)(opens in a new tab)

• RMD rules, the penalty and how to fix a missed RMD

  Source: IRS.gov(opens in a new tab)