RMDs: Required Minimum Distributions
Learn the basics about the withdrawals you're required to take.
Important Information—Waiver for RMDs in 2020 and IRS Relief for Certain Distributions
The CARES Act provides relief to investors and waives RMD requirements in 2020. Accounts affected by this waiver include 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.
The IRS also recently issued additional guidance which generally allows individuals—who took distributions from their IRA or workplace retirement accounts that would have been RMDs in 2020 but were waived as a result of the CARES Act or whose required beginning date was extended as a result of the SECURE Act—to repay the assets back to an eligible retirement account. In addition, the IRS extended the deadline to make the repayments until August 31, 2020. The relief also is available for non-spousal IRA beneficiaries (but not available for workplace retirement plans), as long as the repayment is made to the distributing IRA, no later than August 31, 2020.
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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