Required Minimum Distributions Guide
RMDs begin at age 73 (SECURE 2.0 Act change from 72). The RMD amount = account balance on December 31 of the prior year ÷ IRS life expectancy factor for your age. At 73, the factor is 26.5, meaning you withdraw ~3.77% of the balance. RMDs apply to traditional IRAs, 401ks, and most retirement accounts — not Roth IRAs (Roth 401ks are also exempt from RMDs after 2024). Missing an RMD triggers a 25% excise tax on the shortfall, reduced to 10% if corrected quickly.
When do RMDs start?
Required Minimum Distributions start at age 73 under the SECURE 2.0 Act (passed in 2022, effective 2023). The age rises to 75 for people born in 1960 or later.
How is the RMD amount calculated?
RMD = prior December 31 account balance ÷ IRS Uniform Lifetime Table factor for your age. At age 73 the factor is 26.5, so you withdraw about 3.77% of the balance. The factor decreases each year, increasing the withdrawal percentage.