RMDs: Required Minimum Distributions

Get answers to questions about withdrawals you’re required to take starting at age 73.*


What's an RMD?

An RMD, or required minimum distribution, is the minimum amount of money the IRS mandates you withdraw each year from most tax-deferred retirement accounts, generally once you turn age 73.*

Accounts that require RMDs include:

  • Traditional, Rollover, SEP or SIMPLE IRAs

  • Most employer-sponsored retirement plans, including 401(k) and 403(b) plans

  • Please note different RMD rules apply to inherited IRAs and are not covered here. For questions related to inherited IRA RMDs, please speak with your tax or legal professional.

How do I withdraw an RMD at T. Rowe Price?

As a T. Rowe Price client, you have access to easy-to-use tools designed to help simplify and automate RMDs from your eligible T. Rowe Price retirement accounts.**

What's the deadline for taking an RMD?

  • Your first RMD: Must be taken by April 1 of the year after the year you turn age 73.*

  • Keep in mind: If you defer your first RMD until April 1, you’ll also need to take your second RMD In the same year. This additional income could have significant tax implications to consider.

  • Subsequent RMDs: Must be taken by December 31 of each year.

  • Avoid costly penalties. RMDs aren’t optional. If you don’t take your RMD, or take out too little, you may be faced with an IRS penalty tax up to 25% of the amount not distributed.***

What should I do with my RMD?

If you don’t need your RMD for living expenses, here are three ways you could potentially put your RMD to work for the things that matter most to you.

What are some other common questions about RMDs?

Have more RMD questions?

Speak with a T. Rowe Price Financial Consultant at 1-888-421-0563.

*The SECURE Act of 2019 changed the RMD age requirement from 70½ to 72 and is applicable to those who turned 70½ on or after January 1, 2020. The Secure 2.0 Act of 2022 changed the RMD age to 73 in 2023 only for individuals who turn 72 on or after January 1, 2023. The new law also provides that the RMD age will change again to 75 in 2033.

**Distributions using Auto-RMD are not yet available for Retirement Advisory Services and ActivePlus Portfolio® clients. For Retirement Advisory Services clients, your advisor will reach out to you personally to help handle your RMD. For ActivePlus Portfolios clients, you can take a distribution from your ActivePlus Portfolios account bylogging into your T. Rowe Price account.

***Penalty tax may be further reduced to 10% if corrected within 2 years.

All investments are subject to market risk, including the possible loss of principal.

This material has been prepared for general and educational purposes only. This material does not provide recommendations concerning investments, investment strategies, or account types. It is not individualized to the needs of any specific investor and is not intended to suggest that any particular investment action is appropriate for you, nor is it intended to serve as the primary basis for investment decision-making. Any tax-related discussion contained in this material, 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 tax professional regarding any legal or tax issues raised in this material.

Be sure to review any 529 college savings plan offered by your home state or your beneficiary’s home state, as there may be state tax or other state benefits, such as financial aid, scholarship funds, and protection from creditors that are only available for investments in the home state’s plan. Be sure to read the college savings plan’s disclosure document, which includes investment objectives, risks, fees, charges and expenses, and other information you should read and consider carefully before investing. Tax benefits may be conditioned on meeting certain requirements, such as residency, purpose for or timing of distributions, or other factors, as applicable.

While distributions from 529 college savings plans for elementary or secondary education tuition expenses are federally tax-free, state tax treatment will vary and could include state income taxes assessed, the recapture of previously deducted amounts from state taxes, and/or state-level penalties.