Required Minimum Distributions (RMDs)

For many years, IRS regulations required that you must start taking withdrawals, commonly referred to as “Required Minimum Distributions” (RMDs), from your Traditional IRA account when you reach age 70½.
 
One of the provisions of the SECURE Act 1.0 of 2019 increased the age at which RMDs would begin. If you were born after June 30, 1949, the beginning date for your first RMD must be no later than April 1st of the year following the calendar year in which you reach age 72.
 
One of the provisions of the SECURE Act 2.0 of 2022 further increased the age at which RMDs would begin. If you were born in 1951 or later, the beginning date for your first RMD must be no later than April 1st of the year following the calendar year in which you reach age 73.
 
The Beginning Dates for the first RMD are summarized in the table below.

Your Required Minimum Distribution (RMD) is the minimum amount that you must withdraw from your account each year. The RMD for any year is calculated by dividing the account balance as of the end of the immediately preceding calendar year by the distribution period from the IRS “Uniform Lifetime Table” that applies to you (there are three such Tables).  A separate table is used if the sole beneficiary is the owner’s spouse who is ten or more years younger than the owner.

These RMD rules apply to the following retirement accounts:

• Traditional IRAs
• SEP-IRAs
• SIMPLE IRAs
• 401(k) plans
• 403(b) plans
• 457(b) plans
• Profit sharing plans
• Other defined contribution plans

All RMDs will be reported on a Form 1099-R and must be included in your taxable income in the year you received the RMDs.  The taxable amount reported on Form 1099-R will be an aggregate of the contributions you had made, plus interest, dividends and capital gains realized in that account.