Owners of traditional, SEP, and SIMPLE IRAs born in 1951–1959 must start required minimum distributions at 73. An RMD is the minimum amount that must leave the account each year.
The IRS explains this start age in its overview of required minimum distributions. Original Roth IRA owners have no lifetime RMDs at any age. People born in 1960 or later wait until 75, and pre-tax withdrawals generally count as ordinary income for the year taken.
Table of Contents
- Who has to start at 73?
- When must the money come out?
- How large is the withdrawal and how is it taxed?
- What if you miss, keep working, or give to charity?
Who has to start at 73?
SECURE 2.0 ties the start age to birth year. The 1951–1959 group uses 73, and the 1960 or later group uses 75.
The rule applies to pre-tax traditional, SEP, and SIMPLE IRAs. The IRS says continued work does not delay it. An original Roth IRA has no lifetime requirement, but a person who inherits a Roth still faces payout rules.
When must the money come out?
The first RMD is due by April 1 of the year after turning 73. Each later RMD is due by December 31. The IRS describes these deadlines in its answers on required minimum distributions.
Waiting until April 1 can force two taxable withdrawals in one calendar year. That can raise income for that year. Many savers take the first RMD in the turning-73 year to keep income in separate years.
📨 Get Free Medicare Guides Alerts
Free · No spam · Unsubscribe anytime
How large is the withdrawal and how is it taxed?
Each year's RMD equals the prior December 31 balance divided by an IRS life-expectancy factor. At 73 the factor is 26.5, according to the IRS in its IRA distributions guide.
For example, a $265,000 balance divided by 26.5 gives a $10,000 RMD. The IRS treats that pre-tax amount as ordinary income for the year taken. Take at least that amount from the IRA before the deadline.
- Find the December 31 balance on the year-end statement.
- Use the Uniform Lifetime Table factor for current age.
- Divide the balance by that factor and withdraw at least that amount.
What if you miss, keep working, or give to charity?
A missed RMD draws a 25% excise tax on the amount not taken. The rate falls to 10% if the error is corrected within the two-year correction window and reported on Form 5329. TheStreet, reporting IRS guidance, notes a possible waiver for reasonable error in its report on the 2026 RMD penalty. The IRS says still working does not postpone a traditional IRA RMD.
Owners age 70½ or older have another option. They can direct a qualified charitable distribution to an eligible charity. Paid directly, it can satisfy the RMD and is generally excluded from income up to the indexed annual limit, according to IRS newsroom guidance. Confirm the charity is eligible before moving money. Ask the custodian to send the payment directly to the charity before December 31.
You Might Also Like
- What Roth IRA Rollover Rule Changes Could Affect Retirement Savers?
- What Is the 2026 Traditional IRA Contribution Limit by Age?
- IRS Expands Retirement Plan Correction Options: What IRA Owners Should Know