Required Minimum Distributions: What Changes Once You Turn 73

Category: Retirement Planning Publish Date: October 14, 2026

Required Minimum Distributions, or RMDs, mark a real shift in how retirement accounts work — you move from choosing when to withdraw to being required to withdraw a specific amount each year. Here's what changes once RMDs begin, how the calculation generally works, and where people most often get the timing wrong.

TL;DR

• RMDs generally must begin once you reach a specific age tied to current IRS rules, which has shifted in recent years.
• The amount you're required to withdraw is calculated using your account balance and an IRS life expectancy table, not a number you choose.
• Missing an RMD deadline can trigger a significant IRS penalty on the amount not withdrawn.
• Multiple retirement accounts may each have separate RMD calculations, depending on account type.

Why This Matters

For years, a tax-deferred retirement account is entirely in your control — you decide if and when to withdraw. RMDs change that dynamic: once the applicable age arrives, the IRS requires a minimum withdrawal, calculated by a formula, whether or not you need the money that year. Misunderstanding when RMDs start, how they're calculated, or which accounts they apply to is a common and costly planning gap.

What You'll Need

• A list of your tax-deferred retirement accounts (Traditional IRA, 401(k), etc.)
• Your account balance as of the prior December 31
• Your birthdate, to confirm which RMD age rules apply to you
• Access to the current IRS Uniform Lifetime Table

Required Minimum Distributions, Step by Step

1. Confirm the RMD age that applies to you

The age at which RMDs must begin has changed under recent legislation, so the rule that applied to an older relative may not be the rule that applies to you.

Common mistake: Relying on an outdated RMD age because it's what a parent or older friend dealt with years ago.

2. Identify every account subject to RMDs

Traditional IRAs, 401(k)s, and similar tax-deferred accounts are generally subject to RMD rules, while Roth IRAs typically are not during the original owner's lifetime.

Common mistake: Assuming all retirement accounts are treated identically for RMD purposes.

3. Gather your prior year-end account balances

The RMD calculation starts with your account balance as of December 31 of the previous year — not your current balance.

Common mistake: Using a current balance instead of the required prior year-end figure.

4. Apply the IRS life expectancy table to calculate the amount

Your RMD is generally calculated by dividing your prior year-end balance by a life expectancy factor from the IRS Uniform Lifetime Table.

Common mistake: Estimating the withdrawal amount instead of using the actual table-based calculation.

5. Decide whether to combine RMDs across similar accounts

Some account types allow combining RMD calculations across multiple accounts of the same type, while others require separate withdrawals per account.

Common mistake: Assuming you can pool RMDs across account types that don't actually allow combining.

6. Track your deadline every year, including your first one

Your very first RMD has a slightly different deadline option than subsequent years, which can create confusion if not planned for.

Common mistake: Missing the distinction between the first-year deadline option and the standard annual deadline in later years.

Troubleshooting

• "What happens if I miss an RMD deadline?" A missed RMD can trigger an IRS excise tax penalty on the amount that should have been withdrawn, though relief provisions sometimes apply — this is worth addressing promptly.
• "Do Roth IRAs have RMDs?" Generally not during the original account owner's lifetime, which is one reason some people consider Roth conversions as part of broader planning.
• "Can I take my RMD from just one account if I have several?" It depends on account type — some allow combining calculations across accounts of the same type, others don't.
• "Does my RMD amount change every year?" Yes, it's recalculated annually based on your updated prior year-end balance and the applicable life expectancy factor.
• "What if I'm still working — do RMDs still apply?" For most IRAs, yes; some employer plans have a limited exception for current employees, which is worth confirming with your plan administrator.

Tools and Resources

• The current IRS Uniform Lifetime Table
• Your retirement account statements showing prior year-end balances
• A retirement or tax professional familiar with RMD calculations
• IRS guidance on required minimum distributions for general background

What To Do Next

Pull your prior year-end balance for every tax-deferred account you hold and confirm which RMD age rule applies to your birth year. Those two pieces of information are the foundation for every RMD calculation you'll need going forward.

FAQ

At what age do RMDs generally begin? The applicable age has changed under recent legislation, so it's worth confirming the current rule that applies based on your birth year rather than assuming an older standard.

How is my RMD amount calculated? It's generally your prior year-end account balance divided by a life expectancy factor from the IRS Uniform Lifetime Table.

What happens if I don't take my full RMD? The portion not withdrawn by the deadline can be subject to an IRS excise tax penalty.

Do all my retirement accounts have the same RMD rules? No — account type affects both whether RMDs apply and whether calculations can be combined across accounts.

Is my first RMD deadline different from later years? Yes, your first RMD has an additional deadline option that doesn't apply in subsequent years.

One Last Thing

RMDs can feel like a late-career surprise, but the rules themselves are fairly mechanical once you know which ones apply to you. The bigger planning question is usually what an RMD means for your broader tax picture that year — which is a conversation worth having before the deadline, not after.

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MSJ Benefit Advisors, LLC is a licensed insurance agency. We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. This content is for educational purposes only and is not intended as medical, legal, tax, or investment advice. MSJ Benefit Advisors does not provide tax, legal, or investment advice; please consult a qualified professional for guidance specific to your situation. Plan availability, benefits, and costs vary by carrier, plan, and state.