Required minimum distributions and their start age

How it works

The first required distribution is for the year the owner turns 73 (2024, verified on the official page), and it can be delayed until April 1 of the following year, though delaying puts two distributions in one tax year. Each year's amount is the prior December 31 balance divided by the factor for the owner's age in the IRS Uniform Lifetime Table, with a different table when a spouse more than ten years younger is the sole beneficiary. IRA amounts can be totaled and taken from one IRA, while each workplace plan is taken separately. A worker still employed past the start age can delay distributions from the current employer's plan where the plan allows. Roth IRAs have no required distributions during the owner's life. Missing a distribution carries an excise tax of 25 percent of the shortfall, reduced to 10 percent when corrected promptly.

What it gives

The amount is a simple division, and custodians calculate it and send a notice each year.

A person who is charitably minded can send up to a yearly cap directly to charity and exclude it from income.

The first year's delay to April 1 gives a one time choice of which tax year takes the income.

What it costs, or where the catch is

Distributions are taxable income whether or not the money is needed, which can raise Medicare premiums and tax on Social Security.

The penalty for a missed distribution is steep and the custodian is not responsible for taking it.

Each workplace plan is figured on its own, so a person with three old plans has three calculations.

A worked example

Walter turns the start age this year with $300,000 in his IRA on December 31 of last year. His table factor at that age is 26.5, so his distribution is $300,000 divided by 26.5, about $11,320. He withdraws it in November and the $11,320 is added to his income. If he had forgotten, the excise tax would be 25 percent of $11,320, which is $2,830, or $1,132 if corrected within the window.

Where it goes wrong

The common miss is assuming a custodian will send the distribution on its own, when most only calculate it and wait for instructions.

Who confirms it for you

For your own numbers, a CPA or enrolled agent. This page explains how the rule works for people in general; it does not know your situation and does not tell you what to do.

The official source

IRS: Required minimum distributions. Every figure that changes by year comes from the site's rules table, which the watcher checks against the official page on a schedule; where a figure is not yet verified, this page says so instead of printing a number.