When am I forced to start withdrawing?

Traditional, SEP, and SIMPLE IRAs cannot stay tax-deferred forever. Starting at a statutory age, the owner must withdraw a minimum amount each year and pay ordinary income tax on it. Roth IRAs have no RMDs during the owner's lifetime.

Starting age (SECURE 2.0)

• Born 1951–1959: RMDs begin at age 73.
• Born 1960 or later: RMDs begin at age 75 (first cohort reaches 75 in 2035).

The first RMD may be delayed until April 1 of the year after reaching the starting age; every later RMD is due December 31. Delaying the first RMD means taking two RMDs in one year, which can stack income into higher brackets.

How the amount is computed

Each year's RMD = prior December 31 account balance ÷ the IRS life-expectancy factor for the owner's age (Uniform Lifetime Table for most owners; a joint table applies when the sole beneficiary is a spouse more than 10 years younger). The factor shrinks with age, so the required percentage rises over time — roughly 3.8% of the balance at 73, rising through the 80s and 90s. RMDs from multiple IRAs are computed per account but may be aggregated and taken from any one IRA.

Penalty

Missing an RMD incurs an excise tax of 25% of the shortfall, reduced to 10% if corrected within the statutory correction window (generally two years). Before SECURE 2.0 the penalty was 50%.

Interaction with Roth conversions

• An RMD can never be converted to a Roth IRA. In any year the owner is subject to RMDs, the RMD must be satisfied first; only amounts above it may be converted.
• Conversions completed before RMD age permanently shrink the pre-tax balance that future RMDs are computed from — a primary motivation for converting in the years between retirement and RMD age.
• Qualified charitable distributions (QCDs) — direct IRA-to-charity transfers available from age 70½ — count toward the RMD without adding to income. The 2026 limit is $111,000 per person (inflation-indexed; $108,000 in 2025).

Inherited IRAs (brief)

Most non-spouse beneficiaries inheriting after 2019 must empty the account within 10 years. If the owner died on or after their RMD start date, the beneficiary must also take annual RMDs during that window (IRS final regulations apply this from 2025). Inherited Roth IRAs follow the 10-year rule but distributions are tax-free. Spouses have additional options, including treating the IRA as their own.