SAS Financial Advisors

Required Minimum Distributions

A practical guide to when RMDs begin, which accounts are affected, how distributions are calculated, and strategies that may help reduce the tax impact.

If you own certain retirement accounts, the IRS may require you to begin taking annual withdrawals once you reach a specified age. These withdrawals are known as Required Minimum Distributions, or RMDs.

While the rules are straightforward in principle, timing and account type matter. Thoughtful planning can help you avoid penalties and make more tax-efficient retirement income decisions.

When Do RMDs Begin?

Your required beginning age depends on your birth year:

• Born before 1951: RMDs generally began at age 72
• Born in 1951–1959: RMDs begin at age 73
• Born in 1960 or later: RMDs begin at age 75

RMD Deadlines

• First RMD: Generally due by April 1 of the year after you reach your required beginning age
• Subsequent RMDs: Generally due by December 31 each year

Important: If you delay your first RMD until April 1, you may need to take two distributions in the same calendar year, which can increase taxable income.

Which Accounts Require RMDs?

RMDs generally apply to:

• Traditional IRAs
• SEP IRAs
• SIMPLE IRAs
• 401(k) plans
• 403(b) plans
• Governmental 457(b) plans

Accounts generally exempt during the original owner’s lifetime include:

• Roth IRAs
• Roth employer plan accounts, including Roth 401(k)s

How RMDs Are Calculated

Your annual RMD is generally based on your prior year-end account balance and the IRS life expectancy factor that applies to you.

The final amount can vary based on age, account type, and, in some cases, beneficiary information.

Estimate Your RMD

Use this simple calculator to estimate your RMD. Enter your account value as of December 31 of the prior year and the applicable IRS life expectancy factor.

Penalties for Missing an RMD

If you do not withdraw the full required amount, the IRS may impose an excise tax. The amount of any penalty and available relief can depend on the circumstances, so prompt correction matters.

Strategies to Help Reduce the Tax Impact

Still Working Exception

If you are still employed, you may be able to delay RMDs from your current employer’s retirement plan until retirement, provided you are not more than a 5% owner of the business. This exception generally does not apply to IRAs.

Qualified Charitable Distributions (QCDs)

If you are age 70½ or older, you may be able to make a Qualified Charitable Distribution directly from your IRA to an eligible charity.

For 2026, the annual QCD limit is $111,000 per person.

A QCD can satisfy all or part of your RMD and may help lower taxable income, depending on your circumstances.

Supporting Links

For readers who would like to review the IRS source material directly, the following resources provide additional detail:

• Retirement Plan and IRA Required Minimum Distributions FAQs
• IRS Publication 590-B: Distributions from Individual Retirement Arrangements (IRAs)
• Required Minimum Distribution Worksheets