Required Minimum Distributions, Explained
The IRS eventually takes back the tax break — here's the rule.
When RMDs start
Age 73 if you were born between 1951-1959; age 75 if born 1960 or later. Your first distribution can slide to April 1 of the year after you hit the RMD age — after that, take one every year by December 31.
The math
Divide your December 31 balance by the IRS life-expectancy factor for your age. At 73 the factor is 26.5 — a $500k IRA requires about $18,868 that year. The factor shrinks as you age, so the percentage rises.
The penalty is brutal
Missing an RMD costs 25% of the amount you should have withdrawn (10% if corrected quickly). It's the most expensive retirement mistake to make — set a calendar reminder.
Your distribution
Your Results
RMDs start at age 73 for anyone born after 1960 (age 75 for those born in 1960+). Missing an RMD carries a 25% penalty (10% if corrected quickly).
Frequently Asked Questions
When do RMDs start?
Age 73 if you were born between 1951-1959, age 75 if born in 1960 or later. Your first RMD can be delayed to April 1 of the year after you turn the RMD age.
Which accounts have RMDs?
Traditional IRAs, 401(k)s, and similar employer plans. Roth IRAs have no RMDs during your lifetime — a key reason savers convert.