Question 1

What is a required minimum distribution (RMD)?

Accepted Answer

A required minimum distribution (RMD) is the minimum amount you must withdraw each year from tax-deferred retirement accounts like traditional IRAs and 401(k)s once you reach a certain age. The IRS requires these withdrawals so that tax-deferred savings are eventually taxed as income. The amount is calculated by dividing your prior year-end account balance by a life expectancy factor from IRS tables.

Question 2

At what age do required minimum distributions (RMDs) start?

Accepted Answer

Under the SECURE Act 2.0, RMDs begin at age 73 for account holders who turn 72 after December 31, 2022. This applies to traditional IRAs, 401(k)s, 403(b)s, and most other tax-deferred retirement accounts. Roth IRAs do not require RMDs during the owner's lifetime.

Question 3

How is an RMD calculated?

Accepted Answer

Your RMD is calculated by dividing your account balance as of December 31 of the prior year by the distribution factor for your current age from the IRS Uniform Lifetime Table. For example, at age 75 the factor is 24.6 — so a $500,000 balance would produce an RMD of $500,000 ÷ 24.6 = $20,325.

Question 4

What happens if I inherit a retirement account?

Accepted Answer

Under the SECURE Act, most non-spouse beneficiaries who inherit an IRA or 401(k) after 2019 must withdraw the entire account within 10 years of the original owner's death. There is no annual RMD requirement during that period, but the full balance must be distributed by the end of the 10th year. Surviving spouses and certain other eligible designated beneficiaries may have different options.

RMD Calculator

Assumptions

This Year's RMD

After-Tax Amount

Account at Age 90

RMD Schedule & Account Balance

Distribution Schedule