RMD Guide for Retirees: Ages, Rules, and Strategies

If you have a traditional IRA, SEP IRA, SIMPLE IRA, 401(k), 403(b), or similar tax-deferred account, RMD rules apply to you. Roth IRAs are the major exception: they do not require withdrawals during your lifetime. This guide covers current RMD ages by birth year under SECURE Act 2.0, how to calculate your withdrawal percentage by age using the IRS Uniform Lifetime Table, key differences between 401(k) and IRA rules, and strategies you may want to consider.

What Are Required Minimum Distributions?

RMDs exist because the government provides a tax break on money you contribute to traditional retirement accounts, and it wants to collect taxes on those funds eventually. Once you reach your required beginning date, you must withdraw at least a minimum amount each year and pay ordinary income tax on the distribution, unless part of your balance was already taxed (such as nondeductible contributions).

You can always withdraw more than the minimum. The RMD is a floor, not a ceiling. But withdrawing less than the required amount triggers an excise tax on the shortfall, which is why getting the timing and calculation right matters.

The RMD rules apply to traditional IRAs, SEP IRAs, SIMPLE IRAs, 401(k) plans, 403(b) plans, 457(b) plans, profit-sharing plans, and other defined contribution plans. They do not apply to Roth IRAs while the original owner is alive. (Source: IRS RMD FAQs)

When Do RMDs Start? Your RMD Age by Birth Year

Your RMD starting age depends on your date of birth. The SECURE Act of 2019 raised the starting age from 70½ to 72, and SECURE 2.0 (enacted in late 2022) raised it again in two steps: to 73 for people born 1951 through 1958, and to 75 for people born in 1960 or later.

A note on 1959: The SECURE 2.0 statute created an ambiguity for people born in 1959, because the law's text appears to place them under both the age-73 and age-75 rules. Final IRS regulations issued in 2024 reserved this issue for proposed regulations, which indicate that those born in 1959 should begin RMDs at age 73. Until those proposed regulations are finalized, individuals born in 1959 may want to consult a tax advisor for guidance specific to their situation. (Sources: CRS Report IF12750, IRS Federal Register notice)

Your first RMD is due by April 1 of the year following the year you reach your RMD age. For example, if you turn 73 in 2026, your first RMD is due by April 1, 2027. Your second RMD is due by December 31, 2027. If you delay your first RMD to April 1, you will owe two RMDs in the same calendar year, which could affect your taxable income and Medicare premiums. (Source: IRS Publication 590-B)

How to Calculate RMDs: Withdrawal Percentages by Age

Your RMD for each year is calculated by dividing your prior year-end account balance (as of December 31) by a life expectancy factor from the IRS Uniform Lifetime Table. The formula is straightforward:

Account balance (December 31 of prior year) ÷ life expectancy factor = your RMD

The IRS updated the Uniform Lifetime Table effective January 1, 2022, to reflect longer life expectancies. The table below shows the distribution periods for key retirement ages:

A different table (Joint Life and Last Survivor Expectancy, Table II) applies if your sole beneficiary is a spouse who is more than 10 years younger than you. That table generally produces a lower RMD. (Source: IRS Retirement Topics: RMDs)

You can use our RMD & Stretch Projection calculator to project your required distribution schedule based on your age and account balance.

401(k) vs IRA RMD Rules: Key Differences

While RMDs apply to both workplace plans and IRAs, the rules differ in several important ways:

• Still-working exception (401(k) only). If you are still employed and participate in your current employer's 401(k) or similar plan, you may be able to delay RMDs from that plan until the year you retire. This exception does not apply to IRAs, and it does not apply to 5-percent owners of the business sponsoring the plan. If you have a 401(k) from a previous employer, RMDs from that account are not eligible for the still-working exception. (Source: IRS RMD FAQs)
• IRA aggregation. If you have multiple traditional IRAs, you must calculate the RMD for each account separately, but you can take the total RMD amount from any one IRA or a combination of them. This flexibility does not extend to 401(k) plans: you must take the RMD from each 401(k) account separately. (Source: IRS Publication 590-B)
• Roth accounts. Roth IRAs do not require RMDs during the original owner's lifetime. Designated Roth accounts within a 401(k) or 403(b) also do not require RMDs while the owner is alive. However, beneficiaries who inherit Roth IRAs or designated Roth accounts are subject to RMD rules after the original owner's death. (Source: IRS RMD FAQs)

Tax-Efficient RMD Strategies to Consider

RMDs increase your taxable income each year, which can affect your tax bracket, Medicare premiums (through IRMAA), and the taxability of your Social Security benefits. Several strategies may help manage that impact, though each depends on your individual circumstances:

Qualified Charitable Distributions (QCDs). If you are age 70½ or older, you can direct up to $111,000 (for 2026) from your IRA to a qualified charity. The distribution counts toward your RMD but is excluded from your taxable income. QCDs must be direct trustee-to-trustee transfers from the IRA to the charity, and they cannot be made from a 401(k) or an ongoing SEP or SIMPLE IRA. For retirees in the Piedmont Triad who support local charities, a QCD may satisfy your RMD while reducing adjusted gross income. (Sources: IRS QCD guidance, CRS Report IF11377)

Roth conversions before RMD age. If you are not yet subject to RMDs, converting some pre-tax retirement funds to a Roth IRA could reduce future RMDs, because Roth IRAs are not subject to RMDs during your lifetime. The converted amount is taxable in the year of conversion, so the decision depends on your current tax bracket and expected future income. Our Roth conversion calculator can help you model the tax impact, and our guide to Roth conversions in retirement covers the strategy in more detail.

North Carolina tax context. North Carolina taxes most retirement income, including traditional IRA and 401(k) distributions, at the state's flat income tax rate. Unlike some states, North Carolina does not currently offer a broad exemption for retirement income. This means your RMDs may carry a state tax cost in addition to federal income tax. A tax advisor familiar with North Carolina rules can help you understand how RMDs fit into your overall state and federal tax picture.

For a broader look at how withdrawals, Social Security, and taxes interact in retirement, see our financial planning and tax planning services.

What Happens If You Miss an RMD?

Failing to take your full RMD triggers a federal excise tax on the amount you should have withdrawn but did not. Under SECURE 2.0, the penalty was reduced from 50 percent to 25 percent. If you correct the shortfall in a timely manner, the penalty drops further to 10 percent. You report the shortfall and request the reduced penalty by filing IRS Form 5329. (Source: CRS Report IF12750)

If you realize you missed an RMD, the general guidance is to take the missed distribution as soon as possible, file Form 5329, and consult a tax advisor about requesting the reduced penalty. Acting quickly may help you qualify for the 10 percent rate.

This content is provided for educational purposes only and does not constitute tax, legal, or investment advice. RMD rules and IRS life expectancy tables are subject to change. Consult a qualified tax advisor or financial professional for guidance specific to your individual situation.

This article is general information, not individualized investment, tax, or legal advice, and it does not account for your circumstances. Tax rules referenced are those in effect at the date shown and change over time. Consult a qualified professional before acting.