Required Minimum Distributions: The Ages, the Table and What $300,000 Requires
From age 73, the IRS requires you to take a minimum amount out of your traditional retirement accounts every year. It's called a required minimum distribution, or RMD. On a $300,000 balance, the first one is about $11,321.
The rule exists because the money in those accounts has never been taxed. You got a deduction when you put it in, so it's taxed when it comes out, and the government won't wait forever.
If you're in your fifties, this probably feels far away. It's worth knowing now, because it affects which accounts you build up in the years before. Here are the ages, the table and the math.
Each year's amount starts from your balance on December 31. Example data.
The short version
Required withdrawals start at 73 from traditional IRAs, SEP IRAs, SIMPLE IRAs and most workplace plans.
The amount is last December 31's balance divided by a factor from an IRS table.
At 73, that's about 3.8% of the balance, and the share rises with age.
Roth IRAs have no required withdrawals for the original owner.
Missing one can cost you 25% of the amount you didn't take.
Seven facts to know
Age 73. When required withdrawals generally begin. Under current law, it rises to 75 for people born in 1960 or later.
April 1. Your first withdrawal is due by April 1 of the year after you reach the starting age. Every one after that is due by December 31.
December 31. The balance used for the calculation is the one at the end of the previous year.
Which accounts. Traditional IRAs, SEP IRAs, SIMPLE IRAs and workplace retirement plans.
Roth IRAs and Roth accounts. Withdrawals aren't required while the original owner is alive.
25%. The penalty tax on an amount you should have withdrawn but didn't.
10%. The reduced penalty if you fix the shortfall within two years.
How the amount is worked out
Take the account's balance on December 31 of last year and divide it by a life expectancy factor from the IRS. Most people use the Uniform Lifetime Table.
Age | Factor | Share of the balance |
|---|---|---|
73 | 26.5 | 3.8% |
75 | 24.6 | 4.1% |
80 | 20.2 | 5.0% |
85 | 16.0 | 6.3% |
90 | 12.2 | 8.2% |
The factor gets smaller each year, so the share you must take gets bigger. It starts under 4% and passes 8% by age 90.
What a $300,000 balance requires
Age | Balance on December 31 | Factor | Required withdrawal |
|---|---|---|---|
73 | $300,000 | 26.5 | $11,321 |
75 | $300,000 | 24.6 | $12,195 |
80 | $300,000 | 20.2 | $14,851 |
85 | $300,000 | 16.0 | $18,750 |
We kept the balance at $300,000 in every row to show the effect of the factor on its own. In real life, the balance changes with withdrawals and with the market.
The amount is a minimum, so you can always take more. It's taxed as ordinary income in the year you take it, and that's the part to plan for.
The first-year trap
Because your first deadline is April 1 of the following year, you can delay that first withdrawal into the same calendar year as your second. That means two taxable withdrawals in one year.
Choice | The year she turns 73 | The year after |
|---|---|---|
Take the first by December 31 | One withdrawal, $11,321 | One withdrawal |
Delay the first to April 1 | Nothing | Two withdrawals, about $23,000 together |
Two withdrawals in one year can push your income into a higher tax bracket, and for some people it can raise their Medicare premium two years later, as we explained in our post on what Medicare costs. Delaying is allowed, but it isn't always cheaper.
Traditional and Roth balances behave differently later, so keep them as separate lines. Example data.
Why this matters in your fifties
Required withdrawals apply to traditional accounts but not to a Roth IRA. So the mix you build now decides how much of your retirement income you'll control later.
At 73, she has | Required to withdraw at 73 | Left to her own timing |
|---|---|---|
$300,000, all traditional | $11,321 | The rest, within the rules |
$200,000 traditional and $100,000 Roth | $7,547 | All of the Roth, and the rest of the traditional |
Neither mix is better across the board. The traditional account gave her a tax deduction when she contributed, and that was worth real money. The table just shows that the choice has a second effect, twenty years later. Our post on Roth vs traditional IRAs covers the first effect.
If you're still working at 73
Many business owners are. Working doesn't delay required withdrawals from IRAs, including a SEP IRA. The rules for workplace plans can be different for people who are still employed, and different again if you own the business, so ask before assuming.
A quick estimate you can do today
In the free Net Worth Tracker, keep your traditional and Roth balances as two separate lines. Then one division shows what the rule would require if you were 73 today: your traditional balance divided by 26.5.
On $120,000 of traditional savings, that's about $4,528 a year. It isn't a prediction of your actual first withdrawal. It's a way to see the size of it while you still have time to shape it.
Four things to do now
List your accounts by type: traditional, Roth, and plans from past employers.
Find the December 31 balance on each statement.
If you're within five years of 73, ask your preparer to estimate your first withdrawal and the tax on it.
If you have old workplace plans, note where each one is held. Each has its own requirement.
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Bring it to the Collective
Helping a parent with their required withdrawals this year? Many members are. Ask questions and share what you've learned in the Money Mastery Collective. The discussion feed is open on the free membership.
Questions we hear
At what age do required minimum distributions start?
Generally at 73. Under current law, the age rises to 75 for people born in 1960 or later.
How is a required minimum distribution calculated?
Divide the account balance on December 31 of the previous year by a life expectancy factor from the IRS. At 73, the factor is 26.5.
Do Roth IRAs have required minimum distributions?
Not for the original owner. Withdrawals aren't required until after the owner's death.
What happens if I miss a required minimum distribution?
The amount you didn't withdraw may be subject to a 25% penalty tax, reduced to 10% if you fix it within two years.
References
The starting age, deadlines, penalty tax and Roth treatment are from the IRS Retirement plan and IRA required minimum distributions FAQs, reviewed 29 January 2026. The factors are from the Uniform Lifetime Table in IRS Publication 590-B. The withdrawal tables are our own worked examples.
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A note on what this is
This article is educational. The Money Mastery System is an educational tool, not financial software, and nothing here is legal, tax, investment or financial advice. Required withdrawal rules depend on your birth year, account types, beneficiaries and whether you are still working, and mistakes carry penalties. For guidance on your own circumstances, please speak with a qualified professional who knows them.
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