RMDs: Required Minimum Distributions
Learn the basics about the withdrawals you're required to take.
Important Information—Waiver for RMDs in 2020
The Coronavirus Aid, Relief, and Economic Security (CARES) Act which was passed on March 27, 2020 provides relief to investors by including a provision that waives RMD requirements in 2020. The legislation enables investors to avoid liquidating or transferring assets from certain accounts that may have decreased in value. Accounts affected by this waiver include IRAs, SEP-IRAs, SIMPLE IRAs, and workplace retirement plans. Please note that this applies to you if your first RMD would normally have been due by April 1, 2020, if you reached 70½ last year and did not receive your 2019 RMD in 2019.
The waiver also applies to RMDs required by beneficiaries of inherited IRAs (including Roth IRAs) and inherited workplace retirement plan accounts.
For beneficiaries that inherited an IRA or workplace retirement account that are subject to the 5-year distribution rule, the year 2020 is disregarded. Those beneficiaries will now have a total of 6 years to complete their distributions.
What you need to know about RMDs.
You can fulfill your RMD obligations through one-time transactions or automatic withdrawals from eligible accounts.
If you have multiple IRAs, you must calculate the appropriate RMD for each individually. However, you can take your total distribution amount from any one or a combination of IRAs.
Generally, your RMDs are taxed as regular income within the year they are taken. RMDs can also be subject to state and local taxes. Please consult a tax advisor for more detailed information.
If you don’t take the correct RMD amount, IRS penalties may apply.
Have a workplace retirement account? You will have to contact your current and/or prior employer to calculate the RMD and request a distribution.
If your workplace account is with T. Rowe Price, you can log in now to learn more about your RMD.
Estimate your RMD.
Our RMD Calculator can help you estimate your annual distribution amount. You will need to calculate your RMD each year because it is based on your current age and account balances at the prior year-end.
All investments are subject to market risk, including the possible loss of principal.
This material has been prepared by T. Rowe Price Retirement Plan Services, Inc., for general and educational purposes only. This material does not provide fiduciary recommendations concerning investments or investment management. T. Rowe Price Retirement Plan Services, Inc., its affiliates, and its associates do not provide legal or tax advice. Any tax-related discussion contained in this website, including any attachments/links, is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding any tax penalties or (ii) promoting, marketing, or recommending to any other party any transaction or matter addressed herein. Please consult your independent legal counsel and/or professional tax advisor regarding any legal or tax issues raised in this material.
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