What to know about RMDs
An RMD is an IRS-mandated amount of money that you must withdraw from traditional IRAs or an employer-sponsored retirement account each year. It's important to understand when you need to take an RMD, how to avoid potential costly penalties for late distributions, and maximize your withdrawal strategy.
The IRS requires you to start taking RMDs at 72.
If you are the original account owner your RMD is calculated by dividing prior year-end account balances by a life expectancy factor in the IRS Uniform Lifetime Table (PDF). However, if you are married and your spouse is the only primary beneficiary and is more than 10 years younger than you, your RMD is calculated using the IRS Joint Life Expectancy (PDF) table. If your spouse is no more than 10 years younger, your RMD is calculated using the IRS Uniform Lifetime Table (PDF).