Summary
Required minimum distributions (RMDs) are the withdrawals from most traditional retirement accounts required by IRS rules. The IRS rules also state when the payments must begin and the calculations for the amount of the withdrawals.1 These rules focus on age, account type, and timing, and they can affect how long retirement savings stay invested and when they become taxable income.¹
Required minimum distributions are often discussed later in life, but the basics can be easier to understand than they sound. Knowing the general structure of RMD rules may help you follow how retirement accounts are meant to be used over time.
When required minimum distributions usually begin
Required minimum distributions usually begin once an account holder reaches a specific age set by federal law.¹
Under current rules, RMDs generally start at age 73 for people born between 1951 and 1959, with later starting ages scheduled for younger individuals.1 These age thresholds are updated periodically and may change again in the future.
The first RMD typically must be taken by April 1 of the year following the year you reach the required age.1 After that, future RMDs are usually due by December 31 each year, which may affect how income shows up on a tax return.1
Accounts that often fall under RMD rules include1:
- Traditional IRAs
- Traditional SEP and SIMPLE IRAs
- Most employer-sponsored retirement plans, such as 401(k)s
- Some inherited retirement accounts²
How RMD amounts are generally calculated
The IRS publishes tables that assign a distribution factor based on age, which is then used to divide the account balance and estimate the minimum amount that must be withdrawn.2 Missing an RMD or withdrawing less than required may lead to IRS penalties, which is why many people pay close attention to deadlines and account statements.2
The table below shows a simplified example of how RMDs are calculated2:
| Factor in the calculation | What it represents |
| Prior-year account balance | Value of the account on December 31 |
| IRS life expectancy factor | Number tied to age |
| RMD amount | Balance divided by factor |
If you want help understanding how RMD rules may apply to your own accounts, contact Vantage Point to learn more—we can help you live retirement boldly and on your terms.
Frequently Asked Questions
1. Do Roth IRAs have required minimum distributions?
Because Roth IRA’s are funded with after tax dollars, Roth IRAs owned by the original account holder do not have RMDs during the owner’s lifetime under current IRS rules.¹
2. Are RMD rules the same for inherited accounts?
Inherited retirement accounts often follow different distribution timelines, which can depend on who inherited the account and when the original owner passed away.²
3. Can RMD ages change in the future?
Yes. Congress has changed RMD starting ages before, and future updates may occur through new legislation.
4. Does working past the RMD age matter?
Some employer plans allow delayed RMDs if you are still working, though this does not usually apply to IRAs.1
5. Are RMDs considered taxable income?
Distributions from traditional retirement accounts are generally treated as taxable income, depending on the account and contribution type.¹
Citations
- Retirement topics – Required minimum distributions (RMDs), IRS, Accessed January 26, 2026, https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-required-minimum-distributions-rmds
- Retirement plan and IRA required minimum distributions FAQs, IRS, Accessed January 26, 2026, https://www.irs.gov/retirement-plans/retirement-plan-and-ira-required-minimum-distributions-faqs
Investment advisory services are offered through Vantage Point Financial, a registered investment adviser. Registration with any regulatory body does not imply any particular level of skill. This material is provided for informational purposes only and should not be construed as investment, tax, or legal advice. Working with a financial planner does not ensure financial success or prevent loss. All investments involve risk, including the possible loss of principal. Past performance does not guarantee future results. The scenarios presented are hypothetical and are intended for illustrative purposes only. They do not reflect actual client results and are not guarantees of future outcomes. Individual results will vary. Certain financial strategies may offer tax advantages, but outcomes depend on individual circumstances and are subject to change due to tax laws and other external factors. Vantage Point Financial does not provide legal or tax advice. Consult a tax professional. Retirement outcomes depend on a variety of factors, including individual savings behavior, market performance, health events, and other considerations. Certain statements herein may reflect the firm’s current views, expectations, or beliefs, which are subject to change without notice. For additional information about our services, fees, and disclosures, please refer to our Form ADV Part 2A, available at https://vantagepoint-financial.com or upon request at no cost.
