Required minimum distributions (RMDs), explained
What RMDs are, when they start, how they're calculated, and the penalty for missing one — updated for the SECURE 2.0 Act rules.
Required minimum distributions (RMDs) are the minimum amount the IRS requires you to withdraw each year from most tax-deferred retirement accounts, starting at a certain age, whether or not you need the money.
When RMDs start
Under the SECURE 2.0 Act, the RMD starting age is 73 for most people (up from 72 previously), and is scheduled to rise to 75 starting in 2033. Your specific starting age depends on your birth year — confirm the exact age with a tax professional or the IRS's published tables, since transition rules apply.
Which accounts are affected
RMDs generally apply to traditional IRAs, SEP and SIMPLE IRAs, and traditional 401(k)/403(b) plans. Roth IRAs are not subject to RMDs during the original owner's lifetime, and as of SECURE 2.0, Roth 401(k) and 403(b) accounts are no longer subject to RMDs during the owner's lifetime either.
How the amount is calculated
Your RMD is calculated by dividing your account balance as of December 31 of the prior year by a life-expectancy factor from an IRS table, which is different depending on whether your spouse is your sole beneficiary and more than 10 years younger. The result is a required minimum — you can always withdraw more.
The penalty for missing one
SECURE 2.0 reduced the excise tax penalty for a missed or shortfall RMD from 50% to 25% of the amount not withdrawn, and to 10% if corrected within a defined correction window. It's still a steep penalty worth avoiding with proper planning, such as setting up automatic annual distributions.
Inherited accounts follow different rules
Most non-spouse beneficiaries who inherited an account after 2019 are subject to a 10-year rule requiring the account to be fully distributed within 10 years, with additional annual RMD requirements in some cases depending on whether the original owner had already started RMDs. This is a frequently misunderstood area — see our guide on inheriting money.
Frequently asked questions
At what age do RMDs start?+
Under the SECURE 2.0 Act, most people must begin RMDs at age 73, rising to age 75 starting in 2033. The exact age depends on your birth year, so confirm your specific starting age with a tax professional.
What happens if I miss an RMD?+
The IRS charges an excise tax on the amount you should have withdrawn but didn't — 25% under current SECURE 2.0 rules, reduced to 10% if you correct the shortfall within the applicable correction window. Missing an RMD is avoidable with basic account monitoring or automatic distributions.
Do Roth IRAs have RMDs?+
No. Roth IRAs are not subject to RMDs during the original account owner's lifetime. As of the SECURE 2.0 Act, Roth 401(k) and 403(b) accounts are also exempt from RMDs during the owner's lifetime.
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