Required minimum distributions (RMDs)

If you’ve reached age 731, it’s time to start withdrawals—the IRS requires you to begin taking Required Minimum Distributions (RMDs) from your IRA and workplace retirement accounts every year. That’ll mean new income that’s taxable, with stiff IRS penalties for not taking it on time. Let’s help you maximize this new income.

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Why do I have to take an RMD?

Remember those years when any growth in your retirement accounts went untaxed ... and when tax deductible (IRA) or pre-tax contributions (employer sponsored plan) were subtracted from your taxable income? Those tax advantages were designed to help you build a better retirement. And in the eyes of the IRS, that income you’ve built in your retirement accounts must start to be withdrawn at age 731 at the latest.
Accounts that require RMDs

  • Traditional IRA
  • Rollover IRA 
  • SIMPLE IRA 
  • Workplace plans, such as 401(k) or 403(b) 
  • SEP IRA
  • Inherited IRA 
  • Inherited Roth IRA 
  • Profit sharing
  • Money purchase 
  • Self-employed 401(k)

If you need help with an RMD for your inherited IRA, visit our Inherited IRA RMD page.

2 rules that help simplify things

Rule 1: Aggregating RMDs: RMDs are calculated separately for each of your retirement accounts. Seems like a lot to manage, but here’s an important rule making it a bit easier: If you have more than one IRA, you can total up their RMDs and withdraw it from a single IRA. Same thing for 403(b) accounts—you can take all their RMDs from a single 403(b). But there’s one big exception to the rule: 401(k)s. If you have more than one 401(k), you need to withdraw the RMD from each individual 401(k).


Rule 2: The Working Non-owner: Are you still working, while not owning more than 5% of the company? Then you generally do not have to take RMDs from your workplace retirement plan until you retire.

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How is my RMD calculated?

If you’re the original account owner, your RMD is calculated by dividing the account’s year-end balance from the prior year by your current year's life expectancy factor from the IRS Uniform Life Expectancy Table (PDF). Each year, your life expectancy factor and year-end balance will change—so your RMD amount will change each year, too.


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One exception: Is your spouse more than 10 years younger—and have they been listed as the 100% primary beneficiary of your account for the entire year? Then lucky you: You can calculate your RMD using the IRS Joint Life Expectancy Table, which factors both your age and your younger spouse’s age, resulting in a longer life expectancy. The net result? Less money you’re required to withdraw as an RMD.

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When do I have to take my first RMD?

The deadline to withdraw your RMD is December 31st in the year you reach age 731. You can opt to delay your first RMD until April 1st of the year after you reached age 731.

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December 31

Normal deadline to take RMDs each year

April 1

Final deadline to take your first RMD if you turned 731 in the previous year and opted to delay

December 31

Deadline for your second RMD if you turned 731 in the previous year. No option to delay your second RMD.

Note: If you delay your first RMD until April, you'll have to take two RMDs your first year. The first will still have to be taken by April 1; the second, by December 31. You should consider the tax consequences of taking two RMDs in one year.


Options for taking your first RMD

When do I have to take RMDs after my first one?

December 31

Deadline for withdrawing your RMD each year once you’ve taken your first RMD.

How do I withdraw my RMD?


When it’s time to withdraw RMDs from your Fidelity accounts, you have choices:

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Move cash and/or shares to your Fidelity non-retirement account

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Fidelity automatic withdrawal plan

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Qualified Charitable Distribution

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Electronic funds transfer (EFT) to your bank (instructions must already be on file). Link your bank nowLog In Required

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Bank wire

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Check via US Mail

Withdrawing from your account
Get started today by withdrawing your RMD from your Fidelity IRA.

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Set up an RMD automatic withdrawal plan
Fidelity can calculate your RMD and send it to your Fidelity non-retirement account or bank automatically.

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With so many options for taking your RMDs, Fidelity can’t assume you want us to automatically distribute them—so, you do need to sign up for a Fidelity RMD automatic withdrawal planLog In Required. Ultimately, the responsibility to satisfy your RMD requirements lies with you.


Looking for ways to keep your money working for you?

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Qualified Charitable Distribution (QCD)

If making charitable donations is important to you, using your RMD to make a qualified charitable distribution (QCD) is something to consider. As long as certain requirements are met, the IRS allows you to exclude up to $100,000 in IRA withdrawals (if paid directly to a qualified charity) from income each year. QCDs also count toward your RMD.


For more information on QCDs or to send a QCD from you account, see our Qualified Charitable Distributions information.


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Taxes

The IRS taxes RMDs as ordinary income. This means withdrawals will count toward your total taxable income for the year, and they will be taxed at your applicable individual federal income tax rate. They may also be subject to state and local taxes.


If your IRA balance includes after-tax contributions, you must calculate your RMD based on the total balance; however, the taxable amount of your RMD will be reduced proportionally by the percentage of after-tax money in your IRA accounts. If you need help calculating the after tax portion of your IRAs, the instructions for IRS Form 8606 are a good place to start.


Keep in mind: The additional income from your RMD may increase your federal, state, and local taxes as well as the taxes you pay for Social Security and Medicare.

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Missed RMD

It is important to complete your RMD by the required deadline. The IRS penalty for late withdrawals is 50% for calendar years 2022 and earlier.


If you have missed a part or all of your RMD you must report it on Form 5329 and file it with your 1040 (you cannot use the 1040A if you file Form 5329). For help with this tax form, see the IRS Instructions for Form 5329 (PDF)Log In Required.


SECURE 2.0 Act of 2022 reduced the late withdrawal penalty from 50% to 25% and also allows for an additional reduction to 10%, if the late withdrawal is removed from the account by the appropriate deadline. The reduced penalty applies to late withdrawals for calendar years 2023 and later.


Don't miss future RMDs, sign up for a Fidelity RMD automatic withdrawals planLog In Required.

How Fidelity can help you plan

If you’re considering withdrawing from your IRA, we can help:

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Understand potential ways to use your RMDs

Understand potential ways to use your RMDs


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Consolidate your retirement accounts

Consolidate your retirement accounts to help make RMDs easier*


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Get a holistic view of your retirement income plan

Get a holistic view of your retirement income plan, including how long your money may last, with our Planning & Guidance Center


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FAQs

  • How do I avoid penalties?

    It's important to withdraw your RMD by the appropriate deadline, the IRS penalty for missed RMD amounts is 50% for calendar years 2022 and earlier.

    For example, say you're 74 years old and your RMD for the year is $10,000, but you only withdrew $5,000 by December 31. The 50% penalty would apply to the remaining $5,000 you did not take on time. This means that you may owe the IRS $2,500 for not taking your RMD by the deadline.

    If you miss an RMD, you can ask the IRS for a waiver of the 50% penalty. You can find information on the penalty and how to request a waiver in the instructions for IRS Form 5329. A tax advisor can also help you through the waiver process.

    SECURE 2.0 Act of 2022 reduced the late withdrawal penalty from 50% to 25% and also allows for an additional reduction to 10%, if the late withdrawal is removed from the account by the appropriate deadline. The reduced penalty applies to late withdrawals for calendar years 2023 and later.

  • How will RMDs impact my taxes?

    The IRS taxes RMDs as ordinary income. This means that withdrawals will count towards your total taxable income for the year. Keep in mind that this income increase may push you into a higher tax bracket and may impact the taxes you pay for your Social Security or Medicare.

    If you'd like to reduce the effect of RMDs on your taxes, consider making a qualified charitable distribution (QCD). A QCD excludes the amount you donate from taxable income and can be counted toward satisfying your RMD for the year, as long as certain rules are met.

    A tax advisor can help you determine when to take RMDs and if a QCD is appropriate for your situation.

  • Do I have to take my RMD if I'm still working?

    Yes, even if you continue working past age 73, you have to take an RMD from your IRA.

    However, you may qualify for an exception from taking RMDs from your current employer-sponsored retirement account, such as a 401(k), 403(b), or small-business account, if:

    • You're still working
    • You do NOT own more than 5% of the business you work for

    If you meet all the criteria above, you may delay taking an RMD from the account until April 1 of the year after you retire. Keep in mind that this does not apply to IRAs or other accounts you may hold with companies you no longer work for.

  • Can I reinvest my RMD?

    Yes, you can reinvest the RMD money you take from your Fidelity retirement accounts. Your reinvestment could be made in a taxable non-retirement account, like a Fidelity brokerage account.

  • Can I convert my RMD to my Roth IRA?
    The IRS does not allow you to convert your RMD to a Roth IRA. However, after you have withdrawn the RMD from your IRA or workplace retirement account, you can convert to a Roth IRA at any time. Our Roth Conversion Calculator can help you decide if a Roth conversion is right for you.
  • Can I withdraw my total RMD from one of my retirement accounts?

    If you have multiple IRAs, you have the option to take all of your RMDs from a single IRA. You may also choose to withdraw RMDs for multiple 403(b) accounts from a single 403(b). If you have multiple 401(k) accounts, you must withdraw your RMD separately from each 401(k).

    • For Traditional IRAs, Rollover IRAs, SEP IRAs, SARSEP IRAs, and SIMPLE IRAs: You must calculate the RMD for each of these accounts separately, but you can withdraw the total RMD amount from one or any combination of accounts.
    • For 403(b)s: RMDs must be calculated separately for each account, but the total amount of the RMD can be withdrawn from any one or a combination of your 403(b) accounts.
    • For 401(k) and Fidelity Retirement Plan accounts: RMDs must be calculated separately for each account and taken individually from those accounts.
  • How do I take my RMD?

    Withdrawing online is the easiest ways to take your RMD. To make a one-time withdrawalLog In Required from your IRA, you'll follow these steps:

    • Enter your withdrawal amount and select an account
    • Set up a withdrawal date and where your withdrawals are sent
    • Choose your tax withholding amounts
    • If necessary, sell your investments to make cash available

    You can also set up automatic withdrawalsLog In Required for your RMD on a monthly, quarterly, annual or custom schedule.

    If you know your RMD amount and you're ready to withdraw now, take your RMDLog In Required.

    If you're ready to withdraw but you don't know your RMD amount, log in to see your estimated RMD amountLog In Required.

    If your 401(k) or 403(b) is with Fidelity, you can find information on how to withdraw your RMD by logging into NetBenefits.

  • Do I have to use my RMD money for specific purposes?

    No, you have no requirements on how you use the RMD money you take from your Fidelity retirement accounts.

    Here are 3 ideas to consider before making your RMD and when planning how to use your RMD money (including immediate transfers to eligible Fidelity accounts):

    Already have a Fidelity brokerage or cash management account? Taking your RMD can be fast and simple by making an immediate online transferLog In Required.2

  • Do I have to take my RMDs from my Roth IRA?

    You don't have to take RMDs from a Roth IRA, if you're the original account owner. However, if you have inherited a Roth IRA, you are subject to RMD rules.

    For tax-deferred retirement accounts, withdrawing from a Roth IRA will not meet the RMD requirement.

    You always have the option to convert your Traditional IRA into a Roth IRA. However, if you're over age 73** you'll have to take your RMD for the year before you convert.