If you were born in 1959, your first required minimum distribution isn't due until 2031.
That sounds like plenty of time—until you realize the IRS penalty for missing one is 25% of the amount you should have withdrawn, and a lot of people hit that penalty simply because they didn't know the deadline shifted.
The rules around RMDs have changed twice in recent years, and the confusion is real.
Here's what actually matters for your money.
Required minimum distributions are the amounts you must pull out of traditional IRAs, 401(k)s, and similar tax-deferred accounts once you reach a certain age.
You can't just leave the money growing forever.
The government wants its tax revenue, and the RMD is how it collects.
If you turned 72 before 2023, your RMDs started then.
If you hit 72 in 2023 or later, the starting age is now 73 under the SECURE 2.0 Act.
Another bump to age 75 kicks in for anyone born in 1960 or later.
Roth IRAs don't require withdrawals during your lifetime, but Roth 401(k)s now follow the same rules as traditional ones.
The fine for skipping an RMD is one of the harshest in the tax code.
It's now 25%, and it drops to 10% if you catch the mistake and fix it within a two-year window.
That's still painful on a $20,000 withdrawal you forgot to take.
Your first-year deadline trips up a lot of retirees.
You get a one-time choice: take your first RMD by December 31 of the year you reach the starting age, or delay it until April 1 of the following year.
Delaying sounds smart, but it means you'll take two taxable withdrawals in the same calendar year—which can push you into a higher bracket and trigger higher Medicare premium surcharges two years later.
Every subsequent year, the deadline is December 31, no exceptions.
The IRS uses a life expectancy table, and the percentage generally rises as you get older.
At 73, you divide your account balance by 26.5.
A reasonable rule of thumb: your withdrawal percentage starts near 4% and climbs past 8% in your late 80s.
If you own multiple traditional IRAs, you can total the balance and take one RMD from any single account—but 401(k)s don't allow that flexibility.
Each 401(k) needs its own separate withdrawal.
And failing to remove an inherited IRA's RMD can sting beneficiaries with steep penalties too.
Check your birth year against the current rules.
Set a calendar reminder for early December, not late December, so your custodian has time to process the request.
If you have enough income elsewhere, consider a qualified charitable distribution, which can satisfy your RMD and keep the amount out of taxable income—if you're 70½ or older.
The bottom line: RMDs aren't optional, but they're also not complicated once you know your dates.
Final Thoughts
The penalty for guessing wrong is steep enough that a 15-minute call with your plan administrator is worth more than most financial advice you'll read this month.