What is an RMD and why does the IRS require it?

A required minimum distribution (RMD) is the minimum amount the IRS requires you to withdraw each year from most tax-deferred retirement accounts. These withdrawals ensure that money that hasn’t yet been taxed is eventually included in your taxable income.

How do I know my RMD start age?

Your start age depends on your birth year. If you were born between 1951 and 1959, RMDs begin at age 73. If you were born in 1960 or later, they begin at age 75.

Which retirement accounts require RMDs?

Traditional IRAs, SEP IRAs, SIMPLE IRAs, and most employer-sponsored plans — including 401(k), 403(b), and 457(b) accounts — are subject to RMDs. Roth IRAs and, as of 2024, designated Roth accounts in workplace plans are not subject to RMDs during the original owner's lifetime.

Can I skip my RMD if I don’t need the income?

No. RMDs are required and missing one can trigger a 25% excise tax on the required amount that was not withdrawn. If you don't need the income, you may consider strategies such as a qualified charitable distribution (QCD) or reinvesting the funds in a taxable account.

What happens if I miss an RMD?

You'll owe a 25% penalty on the required amount that was not withdrawn. If you correct the mistake in a timely manner, the penalty may be reduced to 10%. The IRS may also waive penalties for documented reasonable cause.

Can I use one distribution to satisfy RMDs across multiple accounts?

For IRAs, yes, you can aggregate your RMDs and take the total from one or more IRAs. However, workplace plans like 401(k)s must each satisfy their own RMD. You cannot use an IRA distribution to cover a workplace RMD.

Do Roth IRAs have RMDs?

No. Roth IRAs are not subject to RMDs during the original owner's lifetime. Since 2024, Roth accounts in 401(k), 403(b), and 457 plans also follow this rule.

I inherited an IRA — what are my distribution requirements?

For most nonspouse beneficiaries inheriting in 2020 or later, the account must be fully distributed within 10 years. If the original owner had already started RMDs, annual withdrawals are typically required in years one through nine. Spouses and certain eligible beneficiaries have more flexibility.

What is a qualified charitable distribution (QCD) and how does it work?

A QCD is a direct transfer from your IRA to a qualified 501(c)(3) charity. If you're age 70½ or older, you can direct up to $111,000 per person in 2026 to charity. The amount can count toward your RMD and is not included in your taxable income.

How can RMDs affect my Medicare premiums?

RMDs increase your income, which can push you into higher Medicare premium brackets. In 2026, higher premiums apply if your income exceeds $109,000 (single) or $218,000 (married filing jointly). Because Medicare uses a two-year lookback, thoughtful planning can help manage potential IRMAA surcharges.

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