What Is a Required Minimum Distribution (RMD)?

Research. Education. Perspective.

Difficulty: Foundation Reading time: 20 minutes Last reviewed: August 10, 2026

> Educational Resource > > This article explains required minimum distributions and general federal retirement-account rules. It does not recommend when to take distributions, how much more than the minimum to withdraw, whether to make a qualified charitable distribution, how to invest distributed money, or any particular tax or estate-planning strategy.

Executive Summary

A required minimum distribution, or RMD, is the minimum amount federal tax rules generally require an owner or beneficiary to withdraw from certain tax-advantaged retirement accounts.

RMDs commonly apply to:

• Traditional IRAs
• SEP IRAs
• SIMPLE IRAs
• 401(k) plans
• 403(b) plans
• Governmental 457(b) plans
• Other defined contribution retirement plans^[1][2]

RMD rules exist because many retirement accounts allow income or investment growth to remain tax-deferred for years.

Federal law generally does not permit all tax-deferred retirement money to remain sheltered indefinitely.

An RMD tells the account owner:

how much must leave the retirement account

It does not tell the owner:

how the money must be spent after distribution.

The recipient can potentially:

• Spend it
• Hold it in a taxable bank account
• Invest after-tax proceeds in a taxable brokerage account
• Use it for taxes or living expenses
• Give it away
• Use an eligible IRA distribution for a qualified charitable distribution when federal requirements are met

The tax and investment consequences of those choices are separate from the minimum-distribution requirement.

Key Takeaways

• An RMD is a minimum required withdrawal, not a required spending amount.
• Traditional IRAs, SEP IRAs, SIMPLE IRAs and many workplace defined contribution plans have lifetime RMD rules.^[1][2]
• Roth IRAs have no lifetime RMD requirement for the original owner.^[2]
• Designated Roth accounts in 401(k), 403(b) and governmental 457(b) plans also have no lifetime RMD requirement for the original owner under current law.^[2][6][7]
• The current applicable age is generally 73 for the affected current cohort.^[1][2]
• Under SECURE 2.0, the applicable age becomes 75 for people born on or after January 1, 1960.^[6]
• A first RMD can generally be delayed until April 1 of the following year.
• Later RMDs are generally due by December 31.^[1][2]
• An IRA RMD is generally based on the prior December 31 balance divided by an IRS life-expectancy factor.^[2][3]
• Multiple IRA RMDs can generally be aggregated; most separate 401(k)-type plan RMDs cannot.^[2]
• A qualifying 403(b) aggregation exception exists.^[2]
• Taking more than the annual minimum does not prepay future RMDs.^[2][3]
• An RMD generally cannot be rolled over.^[8]
• A shortfall can be subject to a 25% excise tax, potentially reduced to 10% after qualifying timely correction.^[1][2]
• Inherited accounts use separate beneficiary rules.^[1][9]
• The 2026 QCD annual exclusion limit is $111,000.^[10]

What Does RMD Mean?

RMD stands for:

Required Minimum Distribution

The three words describe the rule precisely.

Required

Federal tax law mandates the distribution when the rule applies.

Minimum

The owner can generally take more than the required amount.

Distribution

The money or property must actually leave the retirement account under applicable distribution rules.

> ROIStreet Definition > > A required minimum distribution is the minimum amount federal tax law generally requires to be distributed each year from specified retirement accounts once the owner reaches the applicable starting point or when beneficiary distribution rules apply.

Why Do RMDs Exist?

Tax-deferred retirement accounts can postpone federal income taxation.

Examples include traditional:

• IRA contributions where deductible
• 401(k) salary deferrals
• Employer retirement-plan contributions
• Investment earnings inside the account

Without a minimum-distribution system, pre-tax money could potentially remain sheltered for the owner's lifetime without entering taxable income.

RMD rules create a point at which specified retirement assets generally must begin leaving the tax-deferred account.

An RMD Does Not Force You to Spend the Money

Suppose an IRA owner must distribute $20,000.

The federal RMD rule generally requires the $20,000 to come out of the IRA.

After distribution, the owner does not have to consume it.

The after-tax amount could potentially be:

• Deposited in savings
• Used to purchase investments in a taxable brokerage account
• Used for living expenses
• Used to pay taxes
• Given to family
• Donated

An RMD is therefore a tax-account distribution rule, not a household spending rule.

Which Accounts Have Lifetime RMDs?

Common accounts subject to lifetime RMD rules include:

• Traditional IRAs
• SEP IRAs
• SIMPLE IRAs
• 401(k) plans
• Profit-sharing plans
• 403(b) plans
• Governmental 457(b) plans^[1][2]

Defined benefit pensions can also satisfy minimum-distribution rules through their payment structures.

This article focuses primarily on individual-account retirement plans.

Roth IRA: No Lifetime RMD for Original Owner

The IRS comparison chart states that a Roth IRA has no lifetime RMD requirement for its original owner.^[2]

That does not mean Roth IRAs are outside the RMD system forever.

After the original owner's death, beneficiary distribution rules apply.

The distinction is:

owner lifetime

versus

beneficiary period after death.

Designated Roth 401(k), 403(b) and 457(b): Rule Changed

Historically, designated Roth accounts inside employer plans were subject to lifetime RMD rules even though Roth IRAs were not.

SECURE 2.0 changed that.

Current IRS guidance states that lifetime RMD requirements do not apply to designated Roth accounts in qualified plans, 403(b) plans and governmental 457(b) plans while the owner is alive.^[2][6][7]

That is an important change for older retirement articles.

A current article should not tell readers that a Roth 401(k) must be rolled to a Roth IRA solely to avoid lifetime RMDs.

Under current law, the original owner already has no lifetime RMD from the designated Roth account.

When Do RMDs Begin?

The answer depends on:

• Birth year
• Account type
• Employment status
• Employer-plan terms
• Ownership status
• Whether the account is inherited

For the current RMD cohort, the general applicable age is 73.^[1][2]

SECURE 2.0 schedules a later age for younger cohorts.

Age 73 vs. Age 75

Current final regulations provide:

• Age 73 for the current SECURE 2.0 cohort reaching the applicable age before 2033
• Age 75 for individuals born on or after January 1, 1960^[6]

For someone born in 1960 or later, the lifetime owner RMD starting age is therefore scheduled to be 75 under current law.

That future rule can still be changed by later legislation.

IRA Required Beginning Date

For an IRA owner currently subject to the age-73 rule, the first RMD is generally due by:

April 1 of the calendar year following the year the owner reaches age 73.^[1][2]

This applies even if the IRA owner is still working.^[2]

Employment does not generally delay a traditional IRA RMD.

Employer Plan Required Beginning Date

For a 401(k), profit-sharing, 403(b) or similar defined contribution plan, the first RMD can generally be due by April 1 of the year following the later of:

• The year the participant reaches the applicable age, or
• The year the participant retires

if the plan allows the retirement delay.^[1][2]

There are important exceptions.

The Still-Working Exception

Some employer plans allow a participant who keeps working beyond the applicable RMD age to delay RMDs from that employer's plan until retirement.^[1][2]

This is often called the still-working exception.

It generally does not apply to the participant's traditional IRA.

And it does not necessarily apply to every employer plan.

The plan document matters.

Five-Percent Owner Exception

The IRS states that a participant who is a 5% owner generally cannot use the ordinary employer-plan retirement delay in the same way.^[2][6]

A 5% owner must generally begin based on the applicable age even if still working.

Ownership rules are technical and should be checked when relevant.

The Plan Can Require Earlier Distribution

IRS guidance notes that employer plan terms can require distributions after the participant reaches the applicable age even when federal law would permit a later required beginning date based on retirement.^[1]

The federal rule establishes limits.

The plan can impose an earlier operational start in some circumstances.

First RMD Deadline

A common source of confusion is the first-year deadline.

Suppose an IRA owner reaches age 73 during 2026.

The 2026 RMD can generally be taken as late as:

April 1, 2027

under the first-year rule.^[1][2]

But that does not move the 2027 RMD deadline.

The 2027 RMD is still generally due by:

December 31, 2027.

The Two-RMD First-Year Issue

If the first RMD is delayed into the following calendar year, the account owner can have two RMDs in one calendar year:

1. Prior year's first RMD by April 1
2. Current year's RMD by December 31^[1][2]

Both distributions can potentially enter taxable income in that same tax year to the extent taxable.

That can affect:

• Adjusted gross income
• Federal tax bracket
• Taxation of Social Security
• Medicare income-related premiums
• Other income-based tax provisions

Whether to delay the first distribution is an individual tax question.

The important educational point is simply that the April 1 option does not erase the second RMD.

Subsequent RMD Deadlines

After the first RMD year, the general deadline is:

December 31 each year.^[1][2]

An owner can take the annual RMD:

• In one distribution
• Monthly
• Quarterly
• Through other periodic withdrawals

as long as the total minimum amount is distributed by the applicable deadline.^[2][3]

How Is an IRA RMD Calculated?

For most IRA owners, the basic formula is:

Prior December 31 account balance ÷ IRS distribution period = RMD^[2][3]

Example:

Prior December 31 IRA balance:

$100,000

Applicable denominator:

24.6

RMD:

$100,000 ÷ 24.6 = approximately $4,065

IRS Publication 590-B uses this exact 2026 example for an owner turning age 75 with a spouse six years younger.^[3]

Why the Prior-Year Balance Matters

The RMD for a calendar year generally starts with the account value at the end of the preceding calendar year.^[3]

So a 2026 IRA RMD is generally based on the:

December 31, 2025 account balance

with applicable adjustments.

The current market value halfway through 2026 does not simply replace that statutory starting point.

The Uniform Lifetime Table

Most retirement-account owners use the IRS Uniform Lifetime Table—Table III in Publication 590-B—to determine the denominator.^[3]

As age increases, the denominator generally decreases.

That tends to increase the required withdrawal percentage over time, although actual dollar RMDs still depend on account value.

Younger-Spouse Exception

If the owner's spouse is:

• The sole beneficiary, and
• More than 10 years younger

the IRS generally uses the Joint Life and Last Survivor Expectancy Table, or Table II.^[2][3]

Because the joint life expectancy can be longer, the resulting annual RMD can be smaller than under the Uniform Lifetime Table.

The beneficiary designation matters.

Beneficiary Status Is Not Just Administrative

Publication 590-B applies beneficiary rules when determining which table can be used.^[3]

That means a beneficiary designation can affect:

• Estate transfer
• Inherited-account treatment
• Current owner RMD calculation in the younger-spouse exception

Retirement beneficiary forms can therefore have both estate and lifetime distribution consequences.

Market Declines and RMDs

Suppose a retirement account is worth:

• $1 million on December 31
• $800,000 after a major market decline early the next year

The RMD generally still starts from the prior December 31 balance.

That can require a distribution based on a value higher than the account's current market value.

The rule does not automatically recalculate for an intra-year market decline.

Can Securities Be Distributed In Kind?

Many custodians and plans can permit an in-kind distribution of securities rather than requiring every RMD to be converted to cash first, subject to plan and custodian rules.

The distributed asset leaves the tax-advantaged account and enters a taxable account at its applicable distribution value.

The distribution can still create taxable income to the extent taxable.

An in-kind transfer changes account location.

It does not avoid the RMD.

Are RMDs Always Fully Taxable?

No.

An RMD from a traditional retirement account is generally taxable to the extent it represents previously untaxed amounts.

But some accounts can contain:

• Nondeductible IRA basis
• After-tax employee contributions
• Other amounts already taxed

Those basis amounts can make part of a distribution nontaxable under applicable tax rules.

Form 8606 and other tax records can matter.

The statement:

“Every RMD is 100% taxable”

is therefore too broad.

RMD Withholding

A taxable RMD can be subject to federal and state income-tax withholding.

The account owner can often elect withholding on distributions under applicable rules.

Withholding is a tax-payment mechanism.

It does not change the gross RMD amount required to leave the retirement account.

Can an RMD Be Rolled Over?

Generally no.

IRS rollover guidance states that a required minimum distribution is not an eligible rollover distribution.^[8]

That means an owner cannot generally:

1. Take the RMD
2. Decide it was unnecessary
3. Put the same RMD back into an IRA as a 60-day rollover

The RMD must remain distributed.

Can the After-Tax Proceeds Be Reinvested?

Yes, conceptually.

Although the RMD itself cannot be rolled back into a tax-advantaged retirement account, the owner can potentially invest after-tax proceeds in a taxable brokerage account.

That would be a new taxable investment.

It would not restore the money's prior IRA or 401(k) tax status.

Multiple IRAs: Calculate Separately, Withdraw Collectively

If an owner has multiple traditional IRAs, the IRS requires a separate RMD calculation for each IRA.^[2][3]

But the owner can generally:

• Add the IRA RMD amounts together
• Withdraw the total from one IRA
• Withdraw portions from several IRAs

This aggregation treatment generally extends across traditional, SEP and SIMPLE IRAs under the IRA RMD rules.^[2]

Example: Three IRAs

Suppose:

• IRA A RMD: $5,000
• IRA B RMD: $3,000
• IRA C RMD: $2,000

Total IRA RMD:

$10,000

The owner could potentially take:

• $10,000 from IRA A
• $5,000 from A and $5,000 from B
• Other combinations totaling $10,000

subject to the IRA aggregation rules.

The owner still had to calculate each account's RMD first.

401(k) Plans Generally Cannot Be Aggregated Like IRAs

The IRS comparison chart states that if a participant has multiple defined contribution plans, RMDs generally must be:

• Calculated separately
• Satisfied separately from each plan^[2]

That means an IRA distribution generally cannot be used to satisfy a 401(k) RMD.

And one unrelated 401(k) distribution generally cannot automatically satisfy another 401(k)'s RMD.

Special 403(b) Aggregation Rule

The IRS provides a special exception for multiple 403(b) tax-sheltered annuity accounts.^[2]

The owner can generally:

• Calculate the RMD for each 403(b)
• Total the amounts
• Take the aggregate from one or more of the 403(b) accounts

This resembles IRA aggregation.

It should not be generalized to every employer plan.

Account Type Determines Aggregation

This is one of the most important practical RMD distinctions.^[2]

Can You Take More Than the RMD?

Yes.

The RMD is a minimum, not a maximum.^[2]

An account owner can generally withdraw more if the account and plan rules permit.

But additional taxable distributions can increase taxable income.

Extra This Year Does Not Prepay Next Year

IRS guidance is explicit:

If an owner takes more than the annual RMD, the excess does not count toward a future year's RMD.^[2][3]

Example:

2026 RMD:

$20,000

Actual 2026 distribution:

$40,000

The extra $20,000 reduces the account balance.

But it does not create:

$20,000 of RMD credit for 2027.

The 2027 RMD is calculated under the 2027 rules using the applicable prior-year balance and denominator.

Why Extra Withdrawals Can Still Lower Future Dollar RMDs

There is an important nuance.

An excess withdrawal does not directly prepay a future RMD.

But withdrawing extra money reduces the amount left in the retirement account.

A smaller December 31 account balance can therefore contribute to a smaller future dollar RMD than would otherwise have existed.

That is an indirect balance effect—not a carryforward credit.

RMDs and Market Performance

The RMD formula contains two changing variables:

• Account balance
• Age-based denominator

Strong investment gains can increase the balance used for a later RMD.

Distributions or market losses can decrease it.

Meanwhile, the life-expectancy denominator generally declines as the owner ages.

RMDs therefore do not rise in a perfectly straight line.

Missed RMDs

Failure to take the full required amount can trigger an excise tax.

Current IRS guidance states that the general excise tax is:

25% of the RMD shortfall.^[1][2]

A reduced rate can apply after qualifying correction.

Reduced 10% Excise Tax

The IRS states that the excise tax can be reduced to:

10%

when the missed amount is corrected within the applicable correction period.^[1][2]

Taxpayers may need to file:

Form 5329

to report the tax or request applicable relief.^[1]

The exact correction rules should be reviewed when an actual shortfall occurs.

Example of a Shortfall

Required RMD:

$20,000

Actual qualifying distribution:

$14,000

Shortfall:

$6,000

General 25% excise tax before any qualifying reduction:

$1,500

If the statutory conditions for the reduced 10% rate are satisfied:

$600

This example isolates the excise tax and ignores income tax and possible waiver relief.

Custodian Calculation Does Not Shift Responsibility

IRA custodians often:

• Provide an RMD estimate
• Offer automatic withdrawals
• Send reminder notices

Employer plan administrators typically calculate plan RMDs.

But account owners should not assume that a service provider's calculation eliminates their own tax responsibility.

Complexity can arise from:

• Multiple accounts
• Incorrect beneficiary data
• Outstanding rollovers
• Employer ownership status
• Inherited accounts
• Prior-year corrections

The taxpayer's actual federal requirement controls.

Automatic RMD Services

Many financial institutions offer automatic RMD services.

These can distribute:

• Monthly
• Quarterly
• Annually
• On a selected schedule

Automation can reduce deadline risk.

But it still requires accurate settings, including:

• Correct account balance
• Correct beneficiary information
• Correct aggregation assumptions
• Correct tax withholding
• Correct RMD year

Automation is operational assistance, not a substitute for understanding the rule.

What Happens If the Account Owner Dies?

RMD rules continue after death, but the framework changes.

The beneficiary rules depend on factors including:

• Whether the owner died before or after the required beginning date
• Whether the beneficiary is a surviving spouse
• Whether the beneficiary is an eligible designated beneficiary
• Whether the beneficiary is another individual
• Whether the beneficiary is an estate, trust or other non-individual beneficiary
• The date of death^[1][3][9]

Inherited-account rules should therefore be analyzed separately from lifetime owner RMD rules.

Year-of-Death RMD

If the account owner dies after the required beginning date and had not yet completed the year's RMD, the beneficiary generally must ensure that the owner's remaining year-of-death RMD is distributed.^[1][3]

Publication 590-B states that the year-of-death RMD is calculated as though the owner lived for the entire year.^[3]

If the owner dies before the required beginning date, there generally is no owner RMD for the year of death.^[3]

Later beneficiary rules then determine what happens.

The SECURE Act Changed Inherited Accounts

For deaths after 2019, the SECURE Act significantly changed inherited defined contribution account rules.

Many non-spouse individual beneficiaries are now subject to a 10-year distribution framework.^[9]

But “10-year rule” does not mean every beneficiary follows an identical schedule.

The result can depend on:

• Whether the owner died before or after the required beginning date
• Whether the beneficiary qualifies as an eligible designated beneficiary
• Whether annual distributions are required during the 10-year period
• Other federal rules

A separate inherited IRA guide is appropriate for detailed treatment.

Eligible Designated Beneficiaries

Federal law provides special treatment for certain eligible designated beneficiaries.

These can include, subject to statutory definitions:

• Surviving spouse
• Minor child of the account owner until the applicable transition point
• Disabled individual
• Chronically ill individual
• Individual not more than 10 years younger than the account owner^[3][9]

These beneficiaries can have distribution rules different from an ordinary adult child or other non-spouse beneficiary.

Surviving Spouses Have Special Options

A surviving spouse can have options unavailable to most other beneficiaries.

Depending on the facts, a spouse may be able to:

• Remain beneficiary
• Elect to be treated as the IRA owner
• Roll eligible inherited amounts into the spouse's own IRA
• Use special surviving-spouse RMD rules^[3][9]

The best treatment cannot be inferred from marital status alone.

Age differences, existing accounts, distribution needs and tax circumstances can matter.

Inherited Roth Accounts Still Have Beneficiary Rules

The absence of lifetime RMDs for the original Roth owner does not mean an inherited Roth account can remain untouched forever.

Beneficiary distribution rules apply after the original owner dies.

For many non-spouse beneficiaries, the inherited Roth account can be subject to the applicable 10-year distribution framework.

The tax-free nature of qualifying Roth distributions and the distribution deadline are separate concepts.

RMDs and Qualified Charitable Distributions

A qualified charitable distribution, or QCD, is a special direct IRA distribution to an eligible charitable organization under federal tax rules.

The IRS states that an IRA owner generally must be at least:

70½

when the QCD is made.^[10]

The QCD age has not moved to 73 merely because the RMD starting age changed.

2026 QCD Limit

For 2026, the inflation-adjusted annual QCD exclusion limit is:

$111,000.^[10]

That is the maximum aggregate QCD exclusion under the general annual rule, subject to the statutory requirements.

SECURE 2.0 made the QCD limit inflation-adjusted.

A QCD Can Count Toward an RMD

IRS guidance states that a qualifying QCD can count toward the IRA owner's RMD for the year.^[3][10]

That can allow the distribution to satisfy two separate federal rules:

• Retirement-account distribution requirement
• QCD exclusion rules

But transaction structure matters.

Direct Payment Matters for a QCD

A QCD generally must be paid directly from the IRA trustee or custodian to the eligible charitable organization.^[10]

A distribution paid to the IRA owner first and then donated by personal check is generally not the same transaction for QCD purposes.

That distinction can materially affect federal taxable income.

> QCD Is a Transaction Type, Not Merely a Charitable Intent > > The distribution path and recipient must satisfy the federal requirements.

QCD vs. Charitable Deduction

A qualifying QCD is generally excluded from income to the extent allowed by federal law.

The same QCD amount generally is not also claimed as an itemized charitable deduction.

This prevents the same dollars from receiving two federal tax benefits.

A regular taxable IRA withdrawal followed by a charitable contribution follows a different tax path.

QCDs Are Primarily an IRA Rule

QCD eligibility is generally tied to distributions from IRAs, with special treatment for certain SEP and SIMPLE IRAs only when statutory requirements are satisfied.

A participant should not assume that a distribution directly from a 401(k) automatically qualifies as a QCD.

A retirement-account transfer or rollover before a charitable transaction can involve separate rules.

RMD and QCD Ages Are Different

This is easy to miss.

Under current law:

• QCD eligibility begins at 70½
• Current owner RMD age is generally 73
• Later cohorts move to 75 under the SECURE 2.0 schedule^[6][10]

A person can therefore be old enough to make a QCD before becoming subject to lifetime RMDs.

RMDs and Roth Conversions

An RMD itself cannot be converted to Roth.

Because the RMD is not eligible for rollover, the required amount generally must first be distributed before additional eligible retirement money can be converted under applicable Roth conversion rules.^[8]

A person subject to an RMD should not assume the year's entire IRA distribution can simply be labeled a Roth conversion.

The minimum-distribution layer and conversion layer are separate.

Example: RMD Before Roth Conversion

Assume:

• RMD for the year: $20,000
• Owner wants to move additional pre-tax IRA money to Roth

The first $20,000 required under the RMD rules generally must remain a distribution.

Additional eligible amounts can potentially be converted under Roth conversion rules.

This is a simplified illustration.

Taxable income, basis and account aggregation can make the actual transaction more complex.

RMDs and Tax Brackets

A taxable RMD increases ordinary income to the extent taxable.

That can potentially interact with:

• Marginal tax bracket
• Taxation of Social Security benefits
• Medicare income-related premium adjustments
• Net investment income tax thresholds
• Deduction and credit phaseouts
• State income tax

These interactions explain why the timing of the first RMD can matter.

They do not mean the taxpayer can ignore a required distribution to manage taxes.

RMDs and Social Security Taxation

Social Security benefits can become federally taxable based partly on other income.

A taxable RMD can increase the income measure used in that calculation.

Therefore, an RMD can affect the percentage of Social Security benefits included in taxable income.

This is sometimes called the tax torpedo in retirement-planning discussions.

The phrase is informal.

The underlying issue is simply interaction between two federal tax formulas.

RMDs and Medicare IRMAA

Medicare uses modified adjusted gross income from a prior tax year to determine whether higher-income beneficiaries owe an income-related monthly adjustment amount, or IRMAA.

A large taxable distribution can therefore affect later Medicare premiums.

The exact timing and thresholds are Medicare rules, not RMD rules.

The interaction is another reason to distinguish:

minimum required withdrawal

from

total discretionary retirement withdrawal.

RMDs and State Taxes

Federal RMD rules apply nationally.

State income-tax treatment of retirement distributions varies.

Some states:

• Tax retirement distributions broadly
• Offer age-based exclusions
• Exempt certain pension income
• Have no individual income tax

Federal compliance does not determine the state tax result.

RMDs and Investment Allocation

An RMD can affect portfolio management because assets have to leave the retirement account.

But it does not dictate what assets must be sold if the custodian permits in-kind distributions.

Potential operational choices can include:

• Sell cash-equivalent holdings
• Sell bonds
• Sell stocks
• Distribute securities in kind
• Rebalance while funding the distribution

Those are investment decisions.

The RMD rule itself specifies the minimum distribution amount, not the portfolio strategy used to generate it.

Sequence Risk and RMDs

Retirees can face a difficult environment when:

• Markets decline
• An RMD is due
• Portfolio withdrawals continue

If the distribution requires selling depressed assets, sequence-of-returns risk can become more visible.

Cash reserves or other portfolio structures can affect how the distribution is funded.

Again, the tax rule and investment strategy are separate.

RMDs Do Not Guarantee Retirement Spending Is Sustainable

The RMD percentage is a tax-law minimum withdrawal.

It is not a personalized safe-spending formula.

Taking exactly the RMD does not guarantee:

• The portfolio will last for life
• Spending is too high or too low
• The asset allocation is appropriate
• Tax efficiency is optimized

The federal table was not designed as a customized retirement-income plan.

RMDs Do Not Automatically Match Cash Needs

A retiree might need:

• Less than the RMD for living expenses
• Exactly the RMD
• More than the RMD

The required distribution is based on federal tax rules.

Household spending is based on:

• Housing
• Healthcare
• Lifestyle
• Taxes
• Other income
• Assets
• Longevity

Those two numbers can be very different.

RMDs and Pension Payments

A traditional defined benefit pension often pays benefits under a plan formula rather than through an individual account subject to the same annual account-balance division used for IRAs.

Minimum-distribution rules still apply to qualified pension arrangements, but annuity-payment rules operate differently.

An IRA owner should not apply the IRA Uniform Lifetime Table mechanically to a monthly pension.

The plan administrator handles pension distribution compliance.

RMDs and Annuities Inside Retirement Accounts

When an IRA or employer plan includes an annuity contract, special minimum-distribution rules can apply.

Publication 590-B notes that special rules can coordinate annuity payments with RMD calculations when part of an IRA balance has been annuitized.^[3]

An investor should not assume that:

remaining brokerage assets ÷ ordinary table factor

is always the complete answer after an IRA annuity purchase.

Common Misconceptions

"An RMD means I have to spend the money."

No. The money generally has to leave the retirement account. What happens after distribution is a separate question.

"My first RMD is due on my 73rd birthday."

Generally no. For the current age-73 cohort, the first RMD can usually be taken as late as April 1 of the following year.^[1][2]

"Everyone now starts RMDs at 75."

No. Age 73 remains the current applicable age for the present cohort. Age 75 applies to later cohorts under current law.^[6]

"Roth 401(k)s still require lifetime RMDs."

Not for the original owner under current law.^[2][6][7]

"I can combine all my retirement accounts and take one RMD anywhere."

No. Aggregation depends on account type.^[2]

"If I take twice my RMD this year, I can skip next year."

No. Excess distributions do not count toward future RMDs.^[2][3]

"I can roll my RMD back into an IRA."

Generally no. RMDs are not eligible rollover distributions.^[8]

"My RMD is always 100% taxable."

Not necessarily. After-tax basis and other previously taxed amounts can affect the taxable portion.

"If I wait until April 1 for my first RMD, I only take one distribution that year."

The next year's RMD is still generally due by December 31, potentially producing two RMDs in one calendar year.^[1][2]

"Inherited IRAs use the same rules as my own IRA."

No. Beneficiary RMD rules are separate and can be materially different.^[3][9]

"A QCD is just withdrawing money and then donating it."

No. QCD rules generally require direct payment from the IRA to an eligible charitable organization.^[10]

Frequently Asked Questions

What is an RMD in simple terms?

An RMD is the minimum amount federal tax law generally requires to be distributed from certain retirement accounts each year once the applicable rules begin.^[1][2]

What age do RMDs start?

For the current affected cohort, the general applicable age is 73. Under SECURE 2.0, age 75 applies to individuals born on or after January 1, 1960.^[6]

Do traditional IRAs have RMDs?

Yes.^[1][2]

Do SEP and SIMPLE IRAs have RMDs?

Yes.^[2]

Does a Roth IRA have RMDs while the owner is alive?

No.^[2]

Does a Roth 401(k) have lifetime RMDs?

Not for the original owner under current law.^[2][6][7]

When is the first RMD due?

For a traditional IRA owner under the current age-73 rule, generally by April 1 of the year after reaching age 73.^[1][2]

When are later RMDs due?

Generally by December 31 each year.^[1][2]

How is an IRA RMD calculated?

Generally by dividing the prior December 31 account balance by the applicable IRS distribution period.^[2][3]

Which IRS table do most owners use?

The Uniform Lifetime Table, or Table III in Publication 590-B.^[3]

When is the younger-spouse table used?

Generally when the spouse is the sole beneficiary and is more than 10 years younger than the account owner.^[2][3]

Can I take all my IRA RMDs from one IRA?

Generally yes after separately calculating the RMD for each eligible IRA.^[2][3]

Can I take my 401(k) RMD from my IRA?

Generally no.^[2]

Can I aggregate multiple 403(b) RMDs?

The IRS provides a special aggregation rule for multiple 403(b) accounts.^[2]

Can I take more than the RMD?

Yes.^[2]

Does extra withdrawal count toward next year's RMD?

No.^[2][3]

Can I roll over my RMD?

Generally no.^[8]

What is the penalty for missing an RMD?

The current general excise tax is 25% of the shortfall, potentially reduced to 10% after qualifying timely correction.^[1][2]

Can a QCD satisfy an RMD?

A qualifying IRA QCD can count toward the year's RMD.^[10]

What is the 2026 QCD limit?

The annual general QCD exclusion limit is $111,000 for 2026.^[10]

Do inherited IRAs have RMDs?

Beneficiary distribution rules apply and can require annual or deadline-based distributions depending on the circumstances.^[3][9]

RMD Rules at a Glance

Inherited-account rules require separate beneficiary analysis.

An RMD Research Framework

When reviewing an RMD situation, useful questions include:

1. What type of retirement account is involved?
2. Is the person the original owner or a beneficiary?
3. What is the owner's birth year?
4. What applicable RMD age applies?
5. Is the account an IRA or employer plan?
6. If employer plan, is the owner still working?
7. Does a 5% ownership rule apply?
8. Does the plan permit delayed RMDs until retirement?
9. Is the account traditional or Roth?
10. What was the prior December 31 balance?
11. Which IRS life-expectancy table applies?
12. Is the spouse sole beneficiary and more than 10 years younger?
13. Are there multiple IRAs that can be aggregated?
14. Are there multiple 403(b)s?
15. Are there separate 401(k)s requiring separate distributions?
16. Has any portion of the annual RMD already been distributed?
17. Would delaying the first RMD create two taxable RMDs in one calendar year?
18. Is there after-tax basis that changes the taxable portion?
19. Is a QCD relevant and legally eligible?
20. Has any RMD shortfall occurred?
21. If inherited, what beneficiary classification and death-date rules apply?
22. Are current IRS tables and regulations being used?

These questions organize the distribution analysis without determining a withdrawal, charitable or tax strategy for a particular reader.

The Bottom Line

A required minimum distribution is fundamentally a tax-account rule.

It tells the owner or beneficiary the minimum amount that generally must leave certain retirement accounts under federal law.

It does not say:

• The money must be spent
• The portfolio must be liquidated entirely
• The owner cannot reinvest after-tax proceeds
• Every retirement account can be aggregated
• The RMD is automatically 100% taxable

For a typical IRA owner, the annual calculation begins with:

Prior December 31 account balance ÷ IRS life-expectancy denominator.^[2][3]

For the current cohort, RMDs generally begin under the age-73 framework.

Under current law, the applicable age becomes 75 for individuals born on or after January 1, 1960.^[6]

Roth treatment has also changed materially.

Both:

• Roth IRAs
• Designated Roth 401(k), 403(b) and governmental 457(b) accounts

now avoid lifetime RMDs for their original owners under current federal rules.^[2][6][7]

The administrative details matter.

IRA RMDs can generally be aggregated after separate calculations.

Most 401(k)-type plan RMDs cannot.

Multiple 403(b)s have a special aggregation rule.^[2]

And the first-year April 1 option can produce two taxable RMDs in one calendar year.

The useful question is not simply:

"How much is my RMD?"

It is:

"Which account rules apply, when does the distribution have to occur, which IRS table determines the minimum, which accounts can legally be aggregated, and what tax or beneficiary consequences follow after the money leaves the retirement account?"

That is the foundation for understanding RMDs as part of retirement-account administration rather than as a personalized spending rule.

Continue Your Learning

1. What Is an IRA? — Understand the account most commonly associated with RMD calculations.
2. What Is a 401(k)? — Learn how employer-plan RMD rules differ from IRA rules.
3. What Is a 403(b)? — Understand the special 403(b) RMD aggregation framework.
4. What Is a 457(b)? — Review governmental deferred-compensation RMD treatment.
5. What Is a SEP IRA? — Understand RMDs in an employer-funded IRA structure.
6. What Is a SIMPLE IRA? — Learn how RMDs apply to SIMPLE accounts.
7. What Is Social Security? — Understand how taxable RMD income can interact with retirement income.
8. What Is an Annuity? — Learn why annuitized retirement assets can require special minimum-distribution treatment.

Sources & References

1. Internal Revenue Service: Retirement Topics — Required Minimum Distributions
2. Internal Revenue Service: RMD Comparison Chart — IRAs vs. Defined Contribution Plans
3. Internal Revenue Service: Publication 590-B — Distributions from Individual Retirement Arrangements
4. Internal Revenue Service: Required Minimum Distribution Worksheets
5. Internal Revenue Service: Retirement Plan and IRA RMD FAQs
6. Internal Revenue Service: Final Regulations Relating to Required Minimum Distributions
7. Internal Revenue Service: Retirement Plans FAQs on Designated Roth Accounts
8. Internal Revenue Service: Verifying Rollover Contributions to Plans
9. Internal Revenue Service: Required Minimum Distributions for IRA Beneficiaries
10. Internal Revenue Service: Notice 2025-67 — 2026 Retirement Plan Cost-of-Living Adjustments
11. U.S. Securities and Exchange Commission — Investor.gov: Required Minimum Distribution Calculator

Educational Disclaimer

ROIStreet publishes educational content intended to help readers better understand investing, retirement-account distributions and related financial topics.

Nothing in this article should be interpreted as personalized investment, legal, tax, estate-planning or financial advice, or as a recommendation regarding when to take an RMD, whether to delay a first RMD, how much additional retirement money to withdraw, whether to complete a QCD, Roth conversion, rollover, beneficiary election or investment transaction.

RMD rules depend on account type, birth year, employment and ownership status, beneficiary designations, account balances, plan documents, date of death and current federal law. Readers should review current IRS and plan information and consult qualified tax, legal, estate-planning or financial professionals where appropriate.

The ROIStreet Reader Promise

We strive to explain before we evaluate, present evidence before opinions, discuss risks alongside potential benefits, distinguish facts from analysis, and correct material errors transparently.

Our purpose is to help readers better understand investing—not to tell them what to do.