RMD Help Center
Everything you need to know about Required Minimum Distributions
Important Disclaimer
A Required Minimum Distribution (RMD) is the minimum amount you must withdraw from your tax-advantaged retirement accounts each year once you reach a certain age.
For most people, RMDs begin at age 73 (as of 2023 under SECURE 2.0). If you were born before 1951, your RMD age was 70½; if born between 1951-1959, it was 72.
Accounts Subject to RMDs:
- Traditional IRAs
- SEP IRAs
- SIMPLE IRAs
- 401(k), 403(b), and most employer plans
- Inherited IRAs (different rules apply)
Note: Roth IRAs are NOT subject to RMDs during the original owner's lifetime. However, inherited Roth IRAs have distribution requirements.
Your RMD is calculated by dividing your prior year-end account balance (December 31) by a life expectancy factor from IRS tables.
RMD = Account Balance (Dec 31) ÷ Life Expectancy Factor
Uniform Lifetime Table
The default table for most IRA owners. Used unless your spouse is your sole beneficiary AND more than 10 years younger.
Example: At age 73, the factor is 26.5. With a $500,000 balance: $500,000 ÷ 26.5 = $18,868 RMD
Joint Life and Last Survivor Table
Used only when your spouse is your sole beneficiary AND is more than 10 years younger. Results in smaller RMDs.
Single Life Expectancy Table
Used by beneficiaries of inherited IRAs based on their own age.
When you inherit an IRA, the distribution rules depend on when the original owner died, your relationship to the decedent, and whether the owner had reached their Required Beginning Date (RBD).
Spouse Beneficiaries
Spouses have the most flexibility. They can treat the IRA as their own, roll it into their own IRA, or remain as beneficiary. Each election has different RMD implications.
Eligible Designated Beneficiaries (EDBs)
Includes spouses, minor children of the decedent, disabled or chronically ill individuals, and beneficiaries not more than 10 years younger than the decedent. EDBs can use the life expectancy method.
Non-Eligible Designated Beneficiaries
Most non-spouse beneficiaries who inherit after 2019 must fully distribute the account within 10 years (the "10-Year Rule"). Annual RMDs may also be required during the 10-year period.
Key Dates
- Before 2020: Non-spouse beneficiaries could stretch distributions over their lifetime
- After 2019: SECURE Act introduced the 10-year rule for most non-spouse beneficiaries
- After 2022: SECURE 2.0 updated RBD age to 73 (75 starting 2033)
For most non-spouse beneficiaries who inherit after December 31, 2019, the entire inherited IRA must be distributed within 10 years of the original owner's death.
Annual RMDs During the 10 Years
2024 IRS clarification: If the original owner died on or after their Required Beginning Date (RBD), you must take annual RMDs during the 10-year period.
25%
Standard Penalty
Applied to the RMD shortfall amount
10%
Corrected Penalty
If corrected within the correction window
RMD
Required Minimum Distribution — the minimum amount you must withdraw from retirement accounts annually.
RBD
Required Beginning Date — generally April 1 following the year you turn 73.
EDB
Eligible Designated Beneficiary — can stretch distributions over their lifetime (spouses, minor children, disabled/chronically ill, or within 10 years of decedent's age).
FMV
Fair Market Value — total account value as of December 31 of the prior year, used to calculate your RMD.
SECURE Act
Setting Every Community Up for Retirement Enhancement Act of 2019 — introduced the 10-year rule for most inherited IRAs.
Life Expectancy Factor
A number from IRS tables by which you divide your prior-year-end balance to calculate your RMD.
Ready to calculate your RMDs?
SimpleRMD helps you calculate, track, and stay on top of your Required Minimum Distributions.