To take an RMD correctly, identify the right deadline, calculate the required amount using the correct account balance and IRS life-expectancy table, and withdraw it from an account that is allowed to satisfy that RMD. A required distribution from a traditional tax-deferred account is generally taxable; taking it does not make it tax-free. You can avoid preventable problems—such as taking too little, delaying the first distribution without considering the income timing, or overlooking tax payments—but you generally cannot avoid tax on taxable traditional-account withdrawals just because they are required.
This guide covers general federal rules for original account owners. Inherited accounts, individual tax calculations, state taxes and special plan arrangements may follow different rules.
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When is my first RMD due?
For most original account owners covered by the current rules, required minimum distributions generally begin at age 73. The first deadline depends on the account type and, for some workplace plans, whether you are still working.
Traditional IRA
Your first IRA RMD is due by April 1 of the calendar year after the year you reach the applicable starting age. Every later annual RMD is due by December 31. You may take the first RMD by December 31 of the year you reach the starting age instead; doing so avoids pushing that first distribution into the following tax year.
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401(k) and other workplace plans
A 401(k), profit-sharing plan, 403(b) or other defined-contribution plan generally requires the first RMD by April 1 after the later of the year you reach age 73 or the year you retire, if the plan permits the still-working delay. Plan terms control: a plan may require distributions after age 73 even when you remain employed. A 5% owner generally cannot use the still-working exception to delay the age-based deadline.
The applicable starting age is tied to birth year and law. The IRS describes a future increase to age 75 for an individual who attains age 74 after December 31, 2032. If your starting date is later, confirm the applicable rule for that year rather than assuming age 73 will apply.
Decide whether to use the first-year delay
Deferring an IRA’s first RMD until April 1 may put two RMDs into the same calendar year: the delayed first distribution by April 1 and that year’s regular RMD by December 31. For example, the IRS describes a first RMD for 2024 due April 1, 2025, followed by the 2025 RMD due December 31, 2025. Both distributions may be taxable in 2025. Compare the two timing choices against your expected income and tax payments; the deadline option does not determine which is better for your personal tax situation.
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The usual calculation is the account balance on December 31 of the preceding year divided by an IRS distribution period based on age and the applicable life-expectancy table. For an IRA, use the appropriate IRS worksheet and table or ask the custodian for help. A plan administrator should calculate a workplace-plan RMD; confirm the amount and deadline with the administrator.
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Use the table that fits your beneficiary situation
The IRS Uniform Lifetime Table is generally used for the usual owner calculation. If your spouse is your sole beneficiary and is more than 10 years younger than you, the IRS Joint Life and Last Survivor Expectancy Table generally applies instead. The table affects the distribution period in the calculation, so do not assume the standard table fits every owner.
Installments are allowed, but an excess does not carry forward
You may take an annual RMD in multiple withdrawals during the year, provided the full required amount is distributed by the applicable deadline. Taking more than required in one year does not create a credit that can be applied to a later year’s RMD. Keep a record of distributions and compare the total against the amount due for that particular year.
Can I take my RMD from one IRA if I have several?
Calculate the RMD separately for each IRA, then apply the aggregation rule only where it is allowed. An owner with multiple traditional, SEP or SIMPLE IRAs may generally satisfy the combined IRA RMD by withdrawing the total from one or more of those IRAs. This flexibility does not allow an IRA distribution to satisfy a 401(k) RMD.
| Account type | How to handle the RMD |
|---|---|
| Traditional, SEP or SIMPLE IRAs | Calculate each IRA’s RMD separately; the owner may generally withdraw the combined amount from one or more of these IRAs. |
| 401(k) or other defined-contribution plan | Generally calculate and withdraw the RMD separately for each plan. A withdrawal from one employer plan does not normally satisfy another plan’s RMD. |
| 403(b) tax-sheltered annuity accounts | Multiple accounts have an aggregation exception; confirm how it applies to your accounts with the plan administrator. |
Before requesting a distribution, ask the custodian or plan administrator how to submit it, how long processing takes, what delivery choices are available and whether the plan’s terms affect the request. Processing times and procedures vary by institution; do not wait until the deadline to learn what steps are required.
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Are RMDs taxable, and how can I avoid unnecessary tax surprises?
A required distribution is a minimum-withdrawal rule, not a tax exemption. Traditional IRA and workplace-plan withdrawals are generally included in taxable income, except for amounts previously taxed as basis or amounts otherwise eligible for tax-free treatment. If you have after-tax basis in a traditional IRA, part of a distribution may be treated differently; Form 8606 may be relevant to reporting. The amount taxable depends on your circumstances.
Plan for withholding or estimated payments
Review federal income-tax withholding on the distribution and consider whether estimated tax payments are needed in light of your total income and payments for the year. Do not assume that a custodian’s withholding automatically covers your tax obligation, or that a required withdrawal is tax-free. Publication 590-B addresses withholding and reporting for taxable IRA amounts. The appropriate payment depends on your broader tax picture; this guide does not determine your withholding rate, estimated-tax safe harbor or state tax treatment.
Reduce avoidable timing and compliance problems
- Confirm the deadline for each account rather than treating all retirement accounts as one pool.
- Consider the tax-year effect before deferring an IRA’s first RMD to April 1.
- Track each year’s distributions so you can verify the required total was completed by the deadline.
- Review withholding or estimated payments in the context of all your income and tax payments.
- Confirm account-specific processing rules with the custodian or plan administrator early enough to resolve delays.
These steps can help prevent avoidable errors and plan for taxable income; they do not make a taxable distribution tax-free or guarantee a lower tax bill.
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If you are an eligible IRA owner who already intends to give to charity, ask whether a qualified charitable distribution (QCD) is appropriate. A QCD must meet requirements, including rules about eligible recipients and how the transfer is made. Confirm current eligibility and reporting requirements before arranging the transfer. Do not assume that a QCD is a general-purpose way to send a 401(k) RMD to charity.
What if I missed the deadline or took too little?
The IRS states that the excise tax on an RMD shortfall is 25% of the amount not distributed as required, reduced to 10% if the shortfall is corrected within two years. A shortfall is the amount not distributed by the deadline, not the entire account balance. If this has happened, review the current Form 5329 instructions for the relevant tax year and your facts; the form instructions explain reporting and correction procedures. Do not assume that taking extra money in a later year automatically fixes the earlier-year shortfall.
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