Resource · Retirement Income
RMDs Explained
Required Minimum Distributions in plain English — ages, calculations, penalties, and QCDs.
Once you reach a certain age, the Internal Revenue Service (IRS) requires you to start withdrawing from most tax-deferred retirement accounts each year. This guide explains required minimum distributions (RMDs) in plain English.
What’s inside
What an RMD is
Which retirement accounts are subject to RMDs, and which are not.
When yours start
How your birth year sets your RMD age under the Setting Every Community Up for Retirement Enhancement (SECURE) Acts.
How much you’ll take
How the IRS calculates your yearly amount from your account balance and a life expectancy factor.
Deadlines and penalties
Key dates, the penalty for a missed distribution, and the first-year timing issue to watch.
Strategies to consider
Qualified charitable distributions (QCDs), Roth conversions before RMDs begin, and other ways to manage the tax impact.
Plan ahead of your RMD age
Download the guide to understand what’s ahead. For clients, we calculate and distribute RMDs each year and start planning for them well before they begin.
This content is for informational purposes only and is not individualized advice.