The IRS does not let tax-deferred accounts grow forever. Required minimum distributions force you to begin withdrawing and paying tax.
When RMDs begin
Under SECURE 2.0, RMDs start at age 73 for those who turn 73 before 2033, and at age 75 for those born in 1960 or later. The first distribution can be delayed until April 1 of the following year, but this leads to two taxable distributions in one year.
How the amount is calculated
RMD equals your prior year-end balance divided by a life expectancy factor from the IRS Uniform Lifetime Table. At age 75 the factor is 24.6, so an $800,000 balance requires about $32,500. Missing an RMD triggers a 25% excise tax on the shortfall, reduced to 10% if corrected promptly.
Planning strategies
Consider Roth conversions in lower-income years before RMDs begin. Qualified charitable distributions can satisfy RMDs for IRA owners over 70½ while excluding the amount from income. Roth IRAs have no RMDs for owners.
Try the numbers
Use our Required Minimum Distribution (RMD) Calculator to see this in practice. With its default example (Age this year: 75; Account balance on Dec 31 last year: $800,000; Expected annual growth: 5%), it shows this year’s rmd: $32,520. Adjust the inputs to match your situation.
Key takeaways
- RMDs start at 73 or 75 depending on birth year.
- Missing an RMD triggers a significant excise tax.
- Roth conversions and QCDs can reduce the burden.
This article is for general education and is not personalized financial, tax or legal advice. Rules and limits change; confirm current figures with official sources such as IRS.gov, SSA.gov and StudentAid.gov, or consult a qualified professional. © 2026 FinanzCalc.