A traditional IRA or 401(k) defers tax. In exchange the money must come out eventually — from age 73 a minimum amount has to be withdrawn each year, the required minimum distribution (RMD). Miss it and 25% of the amount not withdrawn is charged as tax. We read the IRS page.
1. From age 73. Withdrawals from IRAs, SEP IRAs, SIMPLE IRAs and retirement plan accounts must begin at 73. Roth IRAs carry no requirement during the owner's life.
2. The first is due by 1 April of the following year; later ones by 31 December each year.
3. Fall short and it is 25%. An excise tax of 25% applies to the shortfall, 10% if corrected within 2 years.
Which accounts are covered
| Category | Accounts | Note |
|---|---|---|
| Covered | Traditional IRAs, SEP IRAs, SIMPLE IRAs, 401(k), 403(b), 457(b), profit-sharing and other defined contribution plans | As listed on the IRS page |
| No lifetime requirement | Roth IRAs; designated Roth accounts in a 401(k) or 403(b) | While the account owner is alive |
| Inherited | Roth IRA beneficiaries appear in the covered list | Beneficiary rules are on a separate page |
Roth accounts appear to be left out because the money going in has already been taxed (our reading). The difference between the accounts is in US IRAs and the US 401(k).
How much — one division
The calculation the IRS gives: the RMD for a year is the account balance at the end of the preceding calendar year divided by a distribution period from the IRS Uniform Lifetime Table. A different table applies where a spouse more than 10 years younger is the sole beneficiary.
| Assumption (our example) | Working | RMD for the year |
|---|---|---|
| Balance of $500,000 at last year-end, distribution period assumed to be 25 | 500,000 ÷ 25 | $20,000 |
The period of 25 is our assumption to show the arithmetic — the real values by age are in the Uniform Lifetime Table, which we did not read this time. An RMD is a minimum, so taking more is allowed, and withdrawals count as taxable income (apart from amounts already taxed and the like).
Dates — only the first year differs
| Withdrawal | Deadline | E.g. turning 73 in 2026 (our application) |
|---|---|---|
| First RMD | 1 April of the year after you reach 73 | By 1 April 2027 |
| Each year after | 31 December | The 2027 RMD by 31 December 2027 |
There is a trap. Delay the first RMD to 1 April and you take two in that year — one by 1 April and another by 31 December. The IRS notes this itself.
Two withdrawals landing in one year's income can push you into a higher bracket (our gloss — brackets are in US tax brackets). Taking the first by 31 December of the year you turn 73 spreads them over two years.
Workplace plans such as a 401(k) differ slightly — the reference can be 1 April after the later of the year you reach 73 and the year you retire, where the plan allows. The IRS adds that a plan document may still require distributions after 73 even while you are employed.
If you miss it — 25%, or 10% once corrected
Where nothing is taken or too little is taken, a 25% excise tax may apply to the amount not distributed; it is 10% if withdrawn within 2 years. It is reported on Form 5329.
| Shortfall (example) | 25% | 10% if corrected within 2 years |
|---|---|---|
| The whole $20,000 not taken | $5,000 | $2,000 |
The table applies the IRS rates to the example above and is our arithmetic. This tax is separate from the income tax on the withdrawal (our reading). Whether there is a procedure to ask for relief is not on this page and was not checked.
When the account owner dies
For the year of death, the RMD is whatever the owner would have had to withdraw and did not. From the following year, the IRS says, it depends on who the designated beneficiary is, and it leaves the detail to a separate beneficiary page — which we did not read this time.
Checklist
- ☐ The year you reach 73
- ☐ Which accounts are covered (traditional IRA, 401(k) and so on) — not a Roth IRA
- ☐ The RMD worked out from last year-end's balance and this year's distribution period
- ☐ Whether to delay the first to 1 April or take it by 31 December of that year
- ☐ The withdrawal finished before 31 December each year
Questions that remain
With several IRAs, must I withdraw from each?
This page does not state the aggregation rule for multiple accounts. We did not confirm it — see IRS Publication 590-B or ask your account custodian.
What about people born earlier?
The page states only age 73 and mentions neither earlier threshold ages nor any future change. Rules for those already taking distributions were not read.
Is it separate from Social Security?
Yes, a separate system. Claiming ages are in US Social Security.
Sources
- IRS, Retirement topics — Required minimum distributions (RMDs) — original (Page Last Reviewed or Updated: 08-Apr-2026; checked 7 October 2026). Age 73, the Roth exception, covered accounts, the formula, 1 April and 31 December, two withdrawals in the first year, 25%, 10% and 2 years, Form 5329, the year-of-death RMD.
- Not read. The Uniform Lifetime Table values by age, Publication 590-B, the beneficiary page, the aggregation rule, state taxes.
- Our arithmetic and reading. The assumed period of 25 and $20,000; $5,000 and $2,000; the 2026 example; the bracket gloss.
Where to check further
- IRS Publication 590-B — the tables and detailed rules.
- Your account custodian — this year's RMD for your account.
Written on 7 October 2026. The rules are set out from the IRS original; the examples and arithmetic are ours. This is not tax advice.
