Plan Ahead with Confidence
If you are age 73 or older, the IRS requires you to take a Required Minimum Distribution yearly.
Required Minimum Distributions (RMDs)
What Is an RMD?
A Required Minimum Distribution (RMD) is the minimum amount you must withdraw each year from certain retirement accounts once you reach a specified age. These rules are set by the IRS to ensure retirement funds are eventually taxed.
Who Is Required to Take RMDs?
You must take RMDs if you own:
• Traditional IRAs
• SEP IRAs and SIMPLE IRAs
• Employer-sponsored retirement plans (e.g., 401(k), 403(b), 457 plans)
Exceptions:
• Roth IRAs do not require RMDs during the original owner’s lifetime
• Roth 401(k)s are no longer subject to RMDs beginning in 2024
When Do RMDs Start?
• RMDs generally begin at age 73
• Your first RMD must be taken by April 1 of the year after you turn 73
• Each subsequent RMD must be taken by December 31 each year
Important Note:
If you delay your first RMD until April 1, you will need to take two distributions in the same year, which may impact your tax bracket.