Required minimum distributions: the rules in plain English

Money in a traditional IRA cannot stay there forever. At a certain age the IRS requires you to start taking some out each year. That yearly amount is the required minimum distribution, or RMD. The rules below come from IRS Publication 590-B.

When they start

At 73, for tax years 2023 and later. Your first distribution has to be taken by April 1 of the year after the year you reach 73. After that, each year's distribution has to be taken by December 31.

That first deadline is later than the rest, which sets a small trap. Wait until April 1 for the first one and the second is still due by December 31 of the same year, so you take two in one calendar year.

How the amount is worked out

Take your account balance at the end of the previous year and divide it by the figure next to your age in the IRS Uniform Lifetime Table. The IRS gives this example: a balance of $100,000 and an owner who turns 75. The figure for 75 is 24.6, and $100,000 divided by 24.6 is $4,065.

The figure shrinks every year, from 26.5 at 73 to 12.2 at 90, so the share you must take grows as you get older. The RMD calculator has the whole table.

When a different table applies

The Uniform Lifetime Table is for unmarried owners, married owners whose spouses are not more than 10 years younger, and married owners whose spouses are not the sole beneficiaries of their IRAs. If your spouse is your sole beneficiary and is more than 10 years younger than you, the IRS uses Table II in the same publication.

If you have more than one IRA

Work out a separate required amount for each traditional IRA. You can then add those amounts up and take the total from any one or more of the accounts.

Taking extra does not carry over

If you take out more than the required amount one year, you get no credit for it later. Next year's requirement is figured from scratch.

Roth IRAs

If you are the original owner of a Roth IRA, you do not have to take distributions at any age. The rules are different for someone who inherits one.

If you miss one

If there are no distributions, or they are not large enough, you may have to pay an excise tax on the amount that was not distributed as required.