Part of: Retirement Income Planning
Required Minimum Distributions: What to Know
Required minimum distributions (RMDs) are minimum amounts that must generally be withdrawn each year from certain retirement accounts once you reach a specific age. This is a general overview; RMD rules are set by federal law and are subject to change.
Which accounts are generally affected
Traditional IRAs and most employer-sponsored retirement plans (401(k), 403(b), and similar) are generally subject to RMD rules once the account owner reaches the applicable age. as of 2026, generally age 73, or 75 for those born in 1960 or later; some workplace-plan participants who are still working may be able to delay RMDs from that employers plan. Roth IRAs have different rules during the original owner's lifetime.
Planning considerations
Because RMDs are generally treated as taxable income, the amount and timing can affect your tax situation for the year, and in some cases decisions made in earlier years (such as Roth conversions) can affect future RMD amounts. Missing an RMD can carry a penalty. As of 2026, the penalty is a 25% excise tax on the amount not withdrawn, reduced to 10% if corrected within two years.
Key takeaways
- RMDs generally apply to certain retirement accounts starting at a specific age set by federal law.
- RMD amounts are generally treated as taxable income.
- RMD rules change periodically — always confirm current thresholds and coordinate with your tax professional.
More in this series
- Retirement Income Planning: A Framework for Coordinating Your Income Sources
- Social Security Claiming Considerations
Related services
Who this may be relevant for
Frequently asked questions
We can help identify and plan around RMD considerations as part of a broader financial plan; account custodians typically handle the distribution mechanics, and your tax professional handles filing. [ENTITY DISCLOSURE REQUIRED]