Glossary
Required minimum distribution
Also called RMD
Definition
A required minimum distribution (RMD) is the smallest amount the owner of a traditional IRA or workplace retirement plan must withdraw each year once they reach the starting age, figured by dividing the prior year-end balance by an IRS life-expectancy factor. Missing it triggers an excise tax.
How required minimum distribution works
RMDs exist because tax-deferred accounts were never meant to defer tax forever. The owner's starting age depends on birth year under SECURE 2.0: 73 (born 1951–1959); 75 (born 1960 or later)2026 · IRS. Each year's RMD is the December 31 balance of the prior year divided by the distribution period for the owner's age, taken from the Uniform Lifetime Table.
The first RMD can wait until April 1 of the following year; every later RMD is due by December 31. Roth IRAs have no RMDs for the original owner. Beneficiaries of inherited accounts follow different rules, including the ten-year rule.
A $500,000 IRA at age 75 has a distribution period of 24.6, so the RMD is about $20,325.
Why it matters to a firm
RMDs are the most predictable fourth-quarter question a retiree asks, and they connect to withholding, qualified charitable distributions and Roth conversion timing. A firm that answers them early keeps the relationship through retirement.
| 2026 figure | Source |
|---|---|
| RMD starting age (SECURE 2.0): 73 (born 1951–1959); 75 (born 1960 or later) | IRS |
Calculators that use required minimum distribution
Questions about required minimum distribution
When are RMDs due?
By December 31 each year, except the first, which can be delayed to April 1 of the following year.
Do Roth IRAs have RMDs?
Not for the original owner. Inherited Roth IRAs have their own rules.
Can I take more than the RMD?
Yes. The RMD is a minimum; extra withdrawals don't count toward future years.
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Related terms: Uniform Lifetime Table · Required beginning date · Qualified charitable distribution · Ten-year rule
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