When You Have to Start Taking Money From Your Retirement Account
The age you must start withdrawals depends on when you were born
The IRS requires you to withdraw money from most retirement accounts starting at a specific age — this is called a Required Minimum Distribution, or RMD. The age when this requirement kicks in changed in 2023, and it continues to shift based on your birth year. If you were born in 1951 or earlier, you already started taking RMDs. If you were born after 1951, the age you must begin is later than it used to be, and it keeps moving forward for younger birth cohorts.
The rule exists because the government wants to collect taxes on money that has been growing tax-free inside retirement accounts. Once you reach the age set for your birth year, you must withdraw at least a minimum amount each year, or face a penalty.
Key Takeaways
- If you were born between 1951 and 1959, you must start RMDs at age 73, beginning in the year you turn 73.
- If you were born in 1960 or later, you must start RMDs at age 75, beginning in the year you turn 75.
- Your first RMD can be delayed until April 1 of the year after you turn the required age, but only your first one — all later withdrawals must happen by December 31 each year.
- The amount you must withdraw is calculated by dividing your account balance by a life expectancy factor the IRS publishes; you do not choose the amount.
- If you do not take your RMD, the IRS charges a penalty equal to 25 percent of the amount you should have withdrawn (or 10 percent if you correct it within two years).
RMD age by birth year
The age at which RMDs begin changed under the SECURE Act, which Congress passed in 2019. The change rolled out gradually, and the required age continues to increase for people born after 1959.
| Birth Year | RMD Starts at Age | First RMD Year |
|---|---|---|
| 1951 or earlier | 72 | Already required |
| 1952–1959 | 73 | Year you turn 73 |
| 1960 or later | 75 | Year you turn 75 |
If you were born in 1951, you turned 72 in 2023 and your first RMD was due by December 31, 2023. If you were born in 1952, you turn 73 in 2025, and your first RMD is due by December 31, 2025. If you were born in 1960, you turn 75 in 2035, and your first RMD is due by December 31, 2035.
How the first RMD works differently
Your first RMD has a special rule: you can delay it until April 1 of the year after you turn the required age. This is called the required beginning date. So if you turn 73 in 2025, you can wait until April 1, 2026 to take your first RMD. This delay applies only to your first withdrawal — every RMD after that must be taken by December 31 of that year.
There is a catch: if you delay your first RMD until April 1, you will owe two RMDs in that second year — one for the year you turned 73 (which you delayed) and one for the current year. This can push you into a higher tax bracket. Many people find it simpler to take the first RMD in the year they turn the required age, rather than delay it.
Which accounts require RMDs
RMDs apply to most tax-deferred retirement accounts: traditional IRAs, SEP IRAs, SIMPLE IRAs, 401(k)s, 403(b)s, and most other employer plans. Roth IRAs do not require RMDs during the account owner's lifetime — this is one major advantage of a Roth. If you inherit a Roth IRA, different rules apply.
If you have multiple IRAs, you calculate the RMD for each one separately, but you can withdraw the total amount from any one IRA (or split it among them however you want). If you have multiple 401(k)s or 403(b)s, you must calculate and withdraw the RMD from each plan separately — you cannot combine them.
How the RMD amount is calculated
You do not choose how much to withdraw. The IRS publishes life expectancy tables, and you divide your account balance (as of December 31 of the previous year) by the factor for your age. The result is your RMD for that year.
For example, if you turn 73 in 2025 and your IRA balance was $500,000 on December 31, 2024, the IRS life expectancy factor for age 73 is 26.5. You divide $500,000 by 26.5, which equals roughly $18,868. That is your RMD for 2025. The calculation changes each year as your age increases and your account balance changes.
Your bank or brokerage can calculate this for you — most do automatically once you reach the required age. You can also use the IRS worksheets or a calculator, but the institution holding your money is responsible for telling you the amount.
What happens if you miss an RMD
If you do not withdraw the full RMD by December 31 (or by April 1 if it is your first one), the IRS charges a penalty. As of 2024, the penalty is 25 percent of the amount you failed to withdraw. If you correct the mistake within two years, the penalty drops to 10 percent. If you correct it after two years, you still owe the full 25 percent.
The penalty is separate from income tax. You still owe income tax on the money you eventually withdraw, plus the penalty on top. This makes missing an RMD expensive. If you think you have missed one, contact your bank or brokerage immediately and ask them to process a catch-up withdrawal. Then file Form 5329 with the IRS to report the missed RMD and request a penalty waiver — the IRS sometimes grants waivers for first-time mistakes or circumstances beyond your control.
Frequently Asked Questions
Can I delay my RMD if I am still working?
If you are still employed and do not own more than 5 percent of the company, you may be able to delay RMDs from your current employer's 401(k) or 403(b) until you retire. This is called the "still-working exception." It does not apply to IRAs or to plans from former employers. Check with your plan administrator about whether your plan allows this.
What if I do not need the money?
You still must withdraw it. The RMD is mandatory regardless of whether you need the income. However, you can donate the RMD directly to a charity using a may have access to charitable distribution, or QCD, if you are at least 70½. This counts toward your RMD without adding to your taxable income. You must work with your IRA custodian to set this up.
Do I owe income tax on my RMD?
Yes, unless the money came from a Roth IRA or from after-tax contributions to a traditional IRA. For most people, the full RMD is taxable as ordinary income in the year you withdraw it. The amount is reported on a 1099-R form your bank sends to you and the IRS.
What if I inherit a retirement account?
Inherited account rules are complex and depend on your relationship to the person who died and when they died. In general, non-spouse beneficiaries must now withdraw inherited IRAs within 10 years. Talk to a tax professional or the institution holding the inherited account about your specific situation.
Can I take my RMD as a lump sum or does it have to be monthly?
You can take it however you want — as one lump sum, monthly, quarterly, or any other schedule — as long as the total amount withdrawn by December 31 meets your RMD. Most people take it monthly or quarterly for cash flow reasons, but the IRS does not care how you spread it out.