facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast phone blog search brokercheck brokercheck Play Pause
RMD Reminder 2023 Thumbnail

RMD Reminder 2023

What’s an RMD?

After you turn a certain age (currently 73), the IRS requires that you withdraw at least a Required Minimum Distribution (RMD) from your tax-deferred accounts each year. (1)

There's one plot twist to keep in mind:

Starting in 2023, the RMD beginning age increased to age 73. So, if you turn 72 in 2023, you won't have to take your first RMD until April 1, 2025. (2)

That's because, in your first eligible year, you can delay your first RMD (and only your first) until April 1 of the following year.

All future RMDs must be taken by December 31 each year.

Keep in mind that delaying that first RMD means you’ll need to take two in the same calendar year, which could significantly impact your taxes.

What happens if I don’t take my RMD?

If you don’t withdraw at least your RMD amount each year, the IRS might impose a penalty on the missed amount.

Which withdrawals count toward my RMD?

RMD rules only apply to your tax-deferred retirement accounts, so any withdrawal from these accounts will count toward satisfying your annual requirement. Tax-deferred accounts include:

  • Traditional IRAs
  • Rollover IRAs
  • SEP IRAs
  • Most small-business retirement accounts
  • Most 401(k) and 403(b) plans

Roth IRAs are typically excluded because they are funded with after-tax money. However, if you inherited a Roth IRA from someone other than your spouse, you will usually be required to take RMDs. (3)


1. https://www.schwab.com/ira/traditional-ira/withdrawal-rules/required-minimum-distributions

2. https://www.irs.gov/retirement-plans/retirement-plan-and-ira-required-minimum-distributions-faqs

3. https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-beneficiary