This chart highlights some of the basic RMD rules as applied to IRAs and defined contribution plans (e.g., 401(k), profit-sharing, and 403(b) plans). Required Minimum Distributions for Account Owners Question IRAs including SEP, SIMPLE and SARSEP IRAs Defined Contribution Plans When do I take my first RMD (the required beginning date)? You must take your first RMD by April 1 of the year following the year in which you turn 73, even if you're still employed. April 1 of the year following the later of the year you turn 73 or the year you retire (if allowed by your plan). If you're a 5% owner, you must start RMDs by April 1 of the year following the year you turn 73. When do I reach age 73? You reach age 73 on your 73rd birthday. Same as IRA rule What is the deadline for taking subsequent RMDs after the first RMD? After the first RMD, you must take subsequent RMDs by December 31 of each year beginning with the calendar year containing your required beginning date. Example: You turn 73 on July 15, 2024. You must take your first RMD, for 2024, by April 1, 2025, (your required beginning date). You must take your second RMD, for 2025, by December 31, 2025, and your third RMD, for 2026, by December 31, 2026. Same as IRA rule How do I calculate my RMD? Your RMD is generally determined by dividing the adjusted market value of your IRAs as of December 31 of the preceding year by the distribution period that corresponds with your age in the Uniform Lifetime Table (Table III in IRS Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs)). If your spouse is your sole beneficiary and is more than 10 years younger than you, you will use the Joint Life and Last Survivor Expectancy Table (Table II in IRS Publication 590-B). Required Minimum Distribution Worksheets Same as IRA rule Your plan sponsor/administrator should calculate the RMD for you. How should I take my RMDs if I have multiple accounts? If you have more than one IRA, you must calculate the RMD for each IRA separately each year. However, you may aggregate your RMD amounts for all your IRAs and withdraw the total from one IRA or a portion from each of your IRAs. You do not have to take a separate RMD from each IRA. If you have more than one defined contribution plan, you must calculate and satisfy your RMDs separately for each plan and withdraw that amount from that plan. Exception: If you have more than one 403(b) tax-sheltered annuity account, you can total the RMDs and then take them from any one (or more) of the tax-sheltered annuities. May I withdraw more than the RMD? Yes, an IRA owner can always withdraw more than the RMD. You cannot apply withdrawals in excess of your RMD to future years' RMDs. Same as IRA rule May I take more than one withdrawal in a year to meet my RMD? You may withdraw your annual RMD in any number of distributions throughout the year, as long as you withdraw the total annual minimum amount by December 31 (or April 1 if it is for your first RMD). Same as IRA rule What happens if I do not take the RMD? If the distributions to you in any year are less than the RMD for that year, the amount not withdrawn is subject to a 25% excise tax, 10% if corrected within two years. Same as IRA rule Note: There are no RMD requirements for a Roth IRA or designated Roth accounts while the owner is alive. Related FAQs - Required Minimum Distributions Publication 560, Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans) Publication 571, Tax-Sheltered Annuity Plans (403(b) Plans) For Employees of Public Schools and Certain Tax-Exempt Organizations Publication 575, Pension and Annuity Income Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs)
