RMDs: Required Minimum Distributions

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

Whether you're working or retired at age 72 (70½ if you turned 70½ on or before December 31, 2019), you must start taking withdrawals from your Traditional, Rollover, SEP, and SIMPLE IRAs. These mandatory minimum withdrawals are your required minimum distributions (RMDs), and we can help you understand what you need to know.

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 professional 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 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.