How Required Minimum Distributions Work After Age 73

Once you reach age 73, the IRS generally requires you to start taking a minimum amount out of your traditional retirement accounts each year. The first deadline is April 1 of the year after you turn 73. The amount is your account balance at the end of the previous year divided by a factor from the IRS Uniform Lifetime Table, and a missed withdrawal can bring a 25% excise tax.

In this guide: - When your first RMD is due, and the April 1 decision - Which accounts are covered, and which are not - How the amount is calculated, with a worked example - The still-working exception - A 3-step check to stay on track

When your first RMD is due

The rule differs slightly by account type. For IRAs, including SEP and SIMPLE IRAs, the first required minimum distribution (RMD) is due by April 1 of the year following the calendar year in which you reach age 73. For 401(k), 403(b), and other defined contribution plans, the deadline is generally April 1 following the later of the year you reach 73 or the year you retire, if your plan allows you to delay until retirement.

Consider the IRS example: John reached age 73 on August 20, 2024. His 2024 RMD was due by April 1, 2025, based on his 2023 year-end balance. His 2025 RMD was due by December 31, 2025, based on his 2024 year-end balance. After the first year, every RMD is due by December 31.

That April 1 grace period comes with a tradeoff. If you wait until April 1 of the following year for your first RMD, you will take two RMDs in the same calendar year, and both count as taxable income that year. You can instead take the first withdrawal by December 31 of the year you turn 73, which keeps the distributions in separate tax years. The right choice depends on your income picture, so it is worth modeling both.

The starting age has been set by law and can differ for younger savers. Check the IRS page linked below for the age that applies to your birth year.

Which accounts are covered

The RMD rules apply to traditional IRAs, SEP IRAs, SIMPLE IRAs, 401(k) plans, 403(b) plans, and other defined contribution plans. Roth IRAs work differently: the IRS says you are not required to take withdrawals from a Roth IRA while you are alive. The same is true for designated Roth accounts inside a 401(k) or 403(b). Beneficiaries of Roth IRAs and designated Roth accounts are still subject to the RMD rules.

Account type	RMD rule during the owner's life
Traditional IRA, SEP IRA, SIMPLE IRA	Required from age 73
401(k), 403(b), other defined contribution plans	Required from age 73 (a retirement delay may apply)
Roth IRA (owner)	Not required
Designated Roth in a 401(k) or 403(b), owner alive	Not required

The table shows the key split in one glance: tax-deferred accounts require RMDs, while Roth accounts generally do not during the owner's life. If you hold both kinds, handle them as two separate checklists, because the deadlines and tax treatment differ.

How the amount is calculated

The formula is simpler than it looks. Your RMD for any year is the account balance as of the end of the immediately preceding calendar year, divided by a distribution period from the IRS Uniform Lifetime Table (Table III in Publication 590-B). If your sole beneficiary is your spouse and your spouse is more than 10 years younger than you, a different table applies. Your custodian or plan administrator may calculate the RMD for you, but the responsibility for taking it stays with you.

Here is a worked example. Assumptions: a traditional IRA balance of $200,000 on December 31 of last year, an owner who is 73 this year, and the Uniform Lifetime Table factor of 26.5 for age 73 from IRS Publication 590-B (2025).

Step 1: $200,000 divided by 26.5 equals $7,547.17.
Step 2: The RMD is about $7,547 for the year.

Factors change with age, so recalculate each year with the new balance and the new factor.

If you are still working

There is one widely used exception. Workplace plan participants can delay RMDs from the plan of the employer they still work for until the year they retire, unless they own 5% or more of the business sponsoring the plan. The delay applies to workplace plans, not to IRAs.

A plan document can also require distributions to begin at 73 even while you work. Confirm the rule with your plan administrator rather than assuming.

If you miss an RMD

If you do not take the full required amount, the IRS says you may owe a 25% excise tax on the amount not distributed as required. The rate is 10% if the amount is withdrawn within 2 years. The tax is reported on Form 5329.

Two more facts matter for planning. RMD withdrawals are taxed at your income tax rate, except for any part that is a return of basis or a qualified Roth distribution. And an RMD amount cannot be rolled over into another tax-deferred account, and a larger withdrawal in one year cannot be applied to a future year's RMD. You cannot skip a year and make it up later.

Check your RMD in 3 steps

List every covered account and check whether the retirement delay applies to your current employer's plan.
Take each account's balance on the prior December 31 and divide it by the Uniform Lifetime Table factor for your age.
Mark two dates on your calendar: April 1 for the first-RMD decision, and December 31 for every year after.

Ask your custodian whether it calculates the RMD, and compare its figure against your own math. The legal responsibility for the withdrawal stays with you.

Before you act

Decide on first-RMD timing: take it by December 31 of the year you turn 73 to split tax years, or by April 1 of the following year and accept two RMDs in one year.
Confirm Roth balances separately. No RMD applies to you as the owner, but your beneficiaries will follow RMD rules.
Check whether your employer's plan allows the retirement delay, and whether the plan document sets its own start date.
Model the tax effect before deciding. A larger single-year income can push you into a different tax bracket, so consider talking with a tax professional.

This article is for general information, not financial advice.