Required Minimum Distributions: The Withdrawals That Start On A Schedule

The Short AnswerRequired minimum distributions start at age 73 for people born 1951 through 1958 and age 75 for those born 1960 or later. Each year's amount is the prior December 31 balance divided by an IRS Uniform Lifetime Table number, 26.5 at age 73. Missing one can bring a 25% excise tax, 10% if timely corrected. Original owners of Roth IRAs take none.

When Do Required Minimum Distributions Start?

The starting age depends on the year of birth. The IRS summarizes it this way: “You generally have to start taking withdrawals from your IRA, SIMPLE IRA, SEP IRA, or retirement plan account when you reach age 73.” The final regulations published in the Federal Register in July 2024 set the full schedule by birth year.

The 1959 row is open on purpose. The regulations’ birth-year list jumps from “before January 1, 1959” to “on or after January 1, 1960.” The statute, as the Federal Register describes it, sets age 73 for an individual who attains age 73 before January 1, 2033, and someone born in 1959 turns 73 in 2032. Which age applies to a 1959 birth year is a question for a CPA.

The first payment has its own deadline. For an IRA, the IRS gives “April 1 of the year following the calendar year in which you reach age 73.” For a 401(k), the IRS says “Generally, April 1 following the later of the calendar year in which you: reach age 73, or retire (if your plan allows you to delay taking your RMD until retirement).” The plan’s own terms matter too: “A retirement plan document may require you to begin receiving distributions after you reach age 73, even if you’re still employed.”

Later payments are due by December 31 each year. Waiting until April 1 for the first one means two RMDs can fall in the same calendar year, so the IRS notes that an owner can instead “make your first withdrawal by December 31 of the year you turn 73,” which places the two withdrawals in separate tax years.

How Is A Required Minimum Distribution Calculated?

The IRS formula is one sentence: “The required minimum distribution for any year is the account balance as of the end of the immediately preceding calendar year divided by a distribution period from the IRS’s “Uniform Lifetime Table.””

Publication 590-B lists that table as Table III, “Applicable Denominator” by age. It is the table for unmarried owners and for “Married Owners Whose Spouses Aren’t More Than 10 Years Younger.” The same publication works an example: an IRA balance of $38,400 divided by 26.5 for an owner who became 73 gives a required minimum distribution of $1,450.

The divisors come from Publication 590-B. The last column is arithmetic on them (1 divided by the divisor, rounded to one decimal). The divisor shrinks every year, so the required share of the prior year-end balance rises with age.

An owner “can withdraw more than the minimum required amount,” according to the IRS. The minimum is the floor for each year.

What Does An RMD Look Like On A Hypothetical Balance?

The next table is a hypothetical illustration, not a projection and not a client example. Assumptions, all in this paragraph: a married couple filing jointly who live in California; the account owner turns 73 in 2026 and the spouse is not more than 10 years younger, so Table III applies with a divisor of 26.5; the balance shown is a single traditional IRA on December 31, 2025; the whole RMD is withdrawn in 2026; there is no other income, no Social Security, no itemized deductions and no credits, only standard deductions; the math uses 2026 federal brackets and California’s 2025 schedules, the latest the FTB has published, through the same tax engine as the site’s calculators. Each component is rounded first and the combined figure is the sum of the rounded parts.

How Are RMDs Taxed In California?

Federally, the IRS says “Your withdrawals will be included in your taxable income except for any part that was taxed before (your basis) or that can be received tax-free (such as qualified distributions from designated Roth accounts).” For a traditional IRA, Publication 590-B adds that distributions “are taxed as ordinary income, but if you made nondeductible contributions, not all of the distribution is taxable.”

California’s guide for pension and annuity income states: “The California treatment of pension and annuity income is generally the same as the federal treatment.” In the illustration above, the California column is computed on the same withdrawal under the 2025 California schedules. Whether a particular payment is taxable in California depends on the account, the basis and the household’s other income, which is a CPA question.

CalculatorSee the federal and California tax on the withdrawals your own balance will need→

What Is The Penalty For Missing An RMD?

The IRS says: “If an account owner fails to withdraw the full amount of the RMD by the due date, the amount not withdrawn may be subject to an excise tax of 25%, 10% if the RMD is timely corrected within two years.” The tax is reported on Form 5329.

Publication 590-B describes the reduced rate: an owner “may be subject to a reduced additional tax rate of 10% of the amount not distributed, if, during the correction window, you take a distribution of the amount on which the tax is due (the excess accumulation) and submit a tax return reflecting this additional tax.”

The tax applies to the amount not withdrawn, not to the whole account. As a hypothetical, with the same assumptions as the table above, if none of a $37,736 RMD were withdrawn, 25% of it would be $9,434 and 10% would be $3,774. For the $75,472 RMD the figures would be $18,868 and $7,547, and for the $113,208 RMD, $28,302 and $11,321. These multiply the rate by the full RMD and leave out any waiver, partial withdrawal or other adjustment.

Which Accounts Have No Required Minimum Distributions?

The IRS lists the plans the RMD rules cover: “traditional IRAs SEP IRAs SIMPLE IRAs 401(k) plans 403(b) plans 457(b) plans profit sharing plans other defined contribution plans Roth IRA beneficiaries.”

Two account types fall outside the rule for their original owners. Publication 590-B says: “If you are the original owner of a Roth IRA, you don’t have to take distributions regardless of your age.” For employer plans, the IRS page says “You’re not required to take withdrawals from Roth IRAs, or from Designated Roth accounts in a 401(k) or 403(b) plan while the account owner is alive.”

The exemption belongs to the owner. The same IRS page adds: “However, beneficiaries of Roth IRAs or Designated Roth accounts are subject to the required minimum distribution rules.”

What Questions Should You Bring To Your CPA?

These are questions, not recommendations. Tyler is a licensed insurance agent, and the answers come from the account documents, the full household income and a CPA. The Second Bill guide explains why the tax treatment of pre-tax accounts is worth understanding long before the first RMD.

About The Author

Tyler Ostrovsky founded 19th Hole Financial after eight years as a professional golfer, including status on PGA Tour Canada. He builds tax strategy and advanced life insurance plans for high earners and works alongside their CPAs and attorneys.