RMDs: Required Minimum Distributions

Learn the basics about the withdrawals you're required to take.

Signed into law December 2019, the SECURE Act is retirement legislation that should help many Americans save more for retirement. One of the most significant changes increases the age individuals will be required to start taking RMDs from qualifying tax-deferred retirement accounts.

Here's how it may affect you:

  • If you turn age 70½ in 2020 or later, you don't have to begin taking your RMDs until age 72.

  • If you reached age 70½ in 2019 or earlier, you are still required to take your RMDs starting the year you turn age 70½ and each subsequent year.

Questions about RMDs?

Speak to a retirement specialist at 1-888-421-0563

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.

 

You don’t have to spend your RMD. As long as you’ve taken it out of the IRA, you can reinvest your money in a taxable account.

 

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.

Questions? Call a T. Rowe Price retirement specialist at 1-888-421-0563.

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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