What You Must Know About Required Minimum Distribution Rules

The what, when, and how much of required minimum distributions

Senior couple using RMD money to take a vacation.
Required minimum distributions start at age 70 1/2.. Bipolar/ Stone/ Getty Images

The IRS requires that you start taking distributions from your qualified retirement accounts (IRA accounts, 401(k)s, 457 plans and other tax-deferred retirement savings plans like a TSA, SEP or SIMPLE) at a specific age. This is called a required minimum distribution, often referred to as an RMD. 

When must I start taking required minimum distributions?

Your first RMD must occur by April 1st of the year after you reach age 70 ½.


Example: Bob’s birthday is in February, thus he turns 70 ½ in August. His first distribution must occur by April 1st of the following year, although he could take this distribution in the current year. If Bob waits until April 1st of the year following the year he turns 70 ½ he will have to take a required minimum distribution for both years. His decision to wait and take two distributions in the second year, or take his first distribution in the year he turns 70 ½ would be made based primarily on his tax situation.

Do I have to take RMDs from a Roth?

You are NOT required to take minimum distributions from your own Roth IRA. However inherited Roth IRAs do have required distributions and so do Roth 401(k)s.

What if I am still working at age 70 1/2?

If you are still working and contributing to your employer sponsored retirement plan some plans will allow you to delay your RMD. This is dependent upon your qualified plan rules.

You will have to check with your plan to see if you will be required to take distributions at age 70 1/2 if you are still working.

What amount must I withdraw as a required minimum distribution?

The amount of your required distribution is based on two things: your prior year’s December 31st account balance, and an IRS table based on your age.

You use your age as of your birthday in the year of your distribution. So if you are taking  a distribution in 2016, use the age that you attain on your birthday that occurs in 2016.

For your reference the first twenty years (covering distributions for ages 70-90) of the most commonly used table, the Uniform Life Expectancy table, is listed at the bottom of this article. To calculate required distributions for someone over age 90, reference the complete Uniform Lifetime table on the IRS website (on this IRS page scroll down to bottom for Table III to find the Uniform Table).

If you have a spouse who is ten years younger than you, or you are taking distributions as a non-spouse beneficiary of an IRA account, than use an alternate table at one of the links below:

Can I rollover my RMD to a Roth?

No, you cannot roll your required minimum distribution to a Roth IRA.

However you can invest it in a brokerage account.

Can I direct my RMD to a charity?

You can direct your RMD to a charity and it will not be reported as taxable income on your tax return. This provision was as temporary provision in the tax code, but was made permanent starting in 2016. It is called a "qualified charitable distribution".

How do I calculate my required minimum distribution?

Take your prior year’s December 31st IRA account balance, look up your age on the appropriate table, and divide your account balance by the factor (remaining distribution period) based on your age.

Example: Bob had $100,000 in his IRA on December 31st of the prior year. Bob is 70 and decides to take his first distribution in the year in which he turns 70 ½.

  • $100,000 / 27.4 = $3,649.63
    This is the amount Bob must withdraw for the calendar year in which he turns 70 ½.

Try an online RMD calculator to estimate your current or future year's required minimum distribution.

What? A penalty for not taking a required minimum distribution!

The penalty for not taking a required minimum distribution is a tax of 50% on the amount that was not withdrawn in time.

For additional information on required minimum distributions see:
IRS Retirement Planning Facts Regarding Required Minimum Distributions

1st 20 Years Of The Required Minimum Distribution Table

First Twenty Years Of The
Required Minimum Distribution Table (Uniform Lifetime)
AgeDistribution Period

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