After years of contributing to your IRA or 401(k) with pre-tax money, the IRS finally wants its share: starting at a certain age, you're required to withdraw a minimum amount every year, whether you want to or not. That required minimum distribution (RMD) isn't optional, and calculating it wrong or missing the deadline has real consequences. This guide explains who must take an RMD, at what age, how the amount is calculated, what penalty applies if you get it wrong, how it connects to your Medicare premiums, and what strategies exist to reduce the tax impact.
What an RMD is and which accounts require it
An RMD is the minimum amount the IRS requires you to withdraw each year from your tax-deferred retirement accounts once you reach the starting age. It applies to traditional IRAs, SEP IRAs, SIMPLE IRAs, and traditional 401(k), 403(b), and 457(b) workplace plans, whether from a current or former employer. It does not apply to a Roth IRA during the original owner's lifetime, because that account already paid its taxes upfront.
The amount withdrawn each year counts as ordinary taxable income, so a large RMD can push you into a higher tax bracket or affect how much of your Social Security benefit gets taxed, even if you don't need that money to live on.
The starting age: 73 under SECURE 2.0
The SECURE 2.0 law, passed in late 2022, gradually raised the RMD starting age. For anyone turning 73 between 2023 and 2032, the starting age is 73. It's scheduled to rise to 75 starting in 2033 for younger generations. Your annual deadline is December 31, except in your very first RMD year, when you can wait until April 1 of the following year — a choice worth thinking through carefully.
Delaying your first RMD until April sounds appealing, but it means that year you'll end up taking two distributions: the delayed one from the prior year and the regular one for the current year. That double withdrawal can push you into a higher tax bracket that specific year, so it's worth running both scenarios before deciding.
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How your RMD amount is calculated
The calculation is simpler than it looks: you divide your account balance as of December 31 of the prior year by a life-expectancy factor the IRS publishes in its Uniform Lifetime Table, based on your age that year. For example, at age 73 the factor is 26.5, so a $500,000 account would require an RMD of roughly $18,868 that year.
If your spouse is more than ten years younger and is your sole beneficiary, you use a different table (the Joint Life and Last Survivor Expectancy Table) that generally produces a larger factor, and therefore a smaller RMD. Most financial institutions calculate this amount for you and notify you early in the year, but the responsibility to withdraw it on time is yours, not theirs.
The penalty for missing the deadline
Before SECURE 2.0, missing your full RMD on time triggered a 50% penalty on the shortfall — one of the harshest in the entire tax code. The law reduced that penalty to 25%, and to just 10% if you correct the mistake within the IRS-defined correction window, generally by withdrawing the missed amount and filing the applicable form with your tax return.
Even with the reduced penalty, it remains a costly and avoidable mistake. We recommend setting calendar reminders several months before December 31, especially if you hold accounts at more than one financial institution.
How your RMD can raise your Medicare premiums (IRMAA)
This is where many retirees get caught off guard: your RMD counts toward your modified adjusted gross income (MAGI), and Medicare uses your MAGI from two years earlier to decide whether you pay an IRMAA surcharge on your Part B and Part D premiums. A large RMD this year — especially if you delayed your first RMD and end up taking two in the same year — can push you into a higher IRMAA tier two years from now, even if your regular income didn't change.
Our 2026 Medicare IRMAA guide explains the current income tiers and surcharges, and how to appeal an IRMAA surcharge if your income dropped due to a qualifying life event. Planning your RMDs with that guide in mind can help you avoid an unexpected premium increase two years later.
Strategies to reduce the impact: QCDs and Roth conversions
If you're 70½ or older and give to charitable causes, a qualified charitable distribution (QCD) lets you transfer up to $108,000 in 2026 directly from your IRA to a qualified charity, and that amount never counts as taxable income at all. Unlike a regular donation, a QCD counts toward your RMD for the year and reduces your MAGI directly, which can also help keep your IRMAA in check.
Another strategy is converting part of your traditional IRA to a Roth IRA in the years before your RMDs begin, generally between retirement and age 73, when your taxable income tends to be lower. You pay tax on the converted amount that year, but you shrink the balance that will generate future RMDs and gain tax-free withdrawals later. This strategy requires carefully calculating how much to convert each year so you don't jump into a higher tax bracket or trigger your own IRMAA surcharge ahead of schedule.
How this connects to a 401(k) rollover
If you have a 401(k) from a former employer, its balance also generates a separate RMD starting at age 73, unless you're still working there. Consolidating that 401(k) into a traditional IRA through a direct rollover doesn't eliminate the RMD requirement, but it does simplify the calculation: instead of managing each workplace plan's RMD separately, you combine it with your other IRAs and decide which account to withdraw the total from.
Our 401(k) rollover checklist covers the steps of the transfer, and our guide on 401(k) vs. IRA rollover compares all your options when leaving a job, including how each one affects your future RMDs. Reviewing that decision before you turn 73 gives you more time to plan Roth conversions or QCDs without a looming deadline.
A bilingual, local resource in Southern California
Karla Arámburo is a bilingual, California-licensed agent serving families in Irvine, San Diego and the rest of Southern California. Reviewing how your RMDs, Roth conversions, and Medicare fit together costs nothing and comes with no pressure to enroll. You can call or text (619) 321-8733 or explore our retirement planning services. This page is general education, not individualized tax advice; we also recommend speaking with an accountant or tax preparer about your exact RMD calculation.
Frequently asked questions
At what exact age must I take my first RMD?
Under the SECURE 2.0 law, the starting age is 73 for anyone turning that age between 2023 and 2032. Your first RMD can be delayed until April 1 of the year after you turn 73, though that means taking two RMDs in that second year, which can spike your taxable income at once.
Do RMDs apply to my Roth IRA?
No, as long as you're the original account holder. Roth IRA accounts require no minimum distributions during the original owner's lifetime, unlike a traditional IRA or a traditional 401(k). Note: a workplace Roth 401(k) used to require RMDs before 2024, but that rule changed and no longer applies.
Can I take my entire RMD from just one IRA if I have several?
Yes. If you have multiple traditional IRAs, you can calculate the RMD for each one separately and then withdraw the combined total from just one of those accounts, or split it across several, whichever you prefer. That flexibility doesn't work the same way across different 401(k) plans: each workplace plan generally requires its own separate withdrawal.
What happens if I'm still working past age 73?
If you're still working and don't own 5% or more of the company, some current-employer 401(k) plans let you delay the RMD from that specific account until you actually retire. That exception doesn't apply to IRAs or to former employers' 401(k) plans, which still require RMDs at 73 regardless of whether you're working elsewhere.
Does a QCD lower my taxable income even if I don't itemize deductions?
Yes, and that's exactly its advantage. A qualified charitable distribution (QCD) is excluded from your taxable income directly, rather than showing up as an itemized deduction, so it benefits you even if you take the standard deduction, something a regular charitable donation can't do.
Does this year's RMD affect my Medicare next year?
It can. Medicare uses your tax return from two years earlier to calculate the IRMAA surcharge on Parts B and D, so a large RMD this year can raise your Medicare premiums two years from now, not immediately.
How severe is the penalty if I forget to take my RMD?
The SECURE 2.0 law reduced the penalty from 50% to 25% of the amount not withdrawn on time, dropping to 10% if you correct the mistake within an IRS-defined correction window. Even so, it's worth avoiding entirely with a clear yearly schedule.