Required minimum distributions (RMDs)
Guide · By Kevin Lan · Updated September 2026
RMDs are the withdrawals the IRS requires from tax-deferred accounts once you reach 73 — the far end of the retirement-account timeline, and a reason to plan Roth conversions early.
What an RMD is
Starting at age 73, the IRS requires you to withdraw a minimum amount each year from your tax-deferred accounts, taxed as ordinary income. The amount is your prior year-end balance divided by an IRS life-expectancy factor, so it rises as you age. Under the SECURE 2.0 Act the starting age is 73 (it rises to 75 in 2033), and your first RMD may be delayed to April 1 of the year after you turn 73.
Which accounts have RMDs
- Have RMDs: traditional IRA, 401(k), 403(b), governmental 457(b), and SEP and SIMPLE IRAs.
- No lifetime RMDs: the Roth IRA — never, during the owner's life. And as of 2024, the Roth 401(k) no longer has lifetime RMDs either, thanks to SECURE 2.0.
That contrast is one more reason the Roth is valued in retirement planning: it never forces a taxable withdrawal.
The penalty for missing one
Missing an RMD is costly, though less than it once was. SECURE 2.0 reduced the penalty from 50% of the shortfall to 25%, and to 10% if you correct the mistake promptly within the IRS's correction window. Even so, it's a deadline worth calendaring.
Why RMDs matter for FIRE
An early retiree who saved heavily in traditional accounts can face large forced withdrawals decades later — RMDs that stack on top of Social Security, push you into a higher bracket, and can raise Medicare premiums (IRMAA). The fix starts early: the low-income years between leaving work and starting Social Security are the ideal window to convert traditional money to a Roth at a low tax rate, shrinking the balance that will later be subject to RMDs. Planning the early-access and the RMD ends together is what keeps the whole retirement tax-efficient. This is educational information, not tax advice; confirm your RMDs and any conversion plan with a qualified professional.
References
- Internal Revenue Service. Retirement topics — required minimum distributions (RMDs); ages and penalties updated by the SECURE 2.0 Act of 2022. irs.gov
- Internal Revenue Service. Publication 590-B: Distributions from Individual Retirement Arrangements (IRAs). irs.gov/publications/p590b
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Frequently asked questions
At what age do RMDs start?
Age 73 under current law (the SECURE 2.0 Act), rising to 75 in 2033. Your first RMD can be delayed to April 1 of the year after you turn 73, though taking two distributions in one year can raise that year's tax.
Do Roth IRAs have required minimum distributions?
No. Roth IRAs have no RMDs during the owner's lifetime. As of 2024, Roth 401(k)s also no longer have lifetime RMDs. Traditional IRAs, 401(k)s, 403(b)s, and 457(b)s all do.
What is the penalty for missing an RMD?
Under SECURE 2.0 the penalty is 25% of the amount you failed to withdraw, reduced to 10% if you correct it promptly within the IRS's correction window — down from the old 50% penalty.
How can I reduce future RMDs?
Convert traditional balances to a Roth during low-income years (for example, early retirement before Social Security), and spend from or convert tax-deferred accounts earlier. A smaller traditional balance means smaller forced withdrawals later.