Required minimum distribution (RMD)What to know about your RMD

At age 73, you need to begin taking money from retirement accounts each year to avoid IRS penalties. We make it simple.*

Good news for Fidelity retirement customers

We do all the RMD calculations for you every year ... and make it easy to take your required amount.

Take your Fidelity RMD

In a few clicks, we’ll help you transfer the RMD amount we’ve calculated for you to a taxable account ... and you’re done for the year!


View your RMD amount

No more guesswork—we’ve done the math for you. See how much you need to take from your Fidelity retirement accounts this year.


Prep for your first RMD

Turning age 73 this year or in the near future? Learn about taxable accounts you can open to receive your RMD, plus your 2 deadline options.


Your RMD checklist by age

Manage for the long haul

  1. Know your annual deadline

    At age 74 and beyond, the deadline for taking your RMD each year is December 31.

  2. Determine what you want to do with the RMD money

    Some popular options for the money include:

    Invest it: Consider depositing to a Fidelity brokerage account.
    Save or spend it: Consider a Fidelity Cash Management account1 or linking a bank accountLog In Required.
    Donate it: See FAQs below on how.

  3. Take your RMD ... and then make it automatic annually

    In a few clicks, simply transfer your Fidelity RMD amount to any taxable account. When you do, we’ll give you the option to make it a recurring transfer every year, saving you future hassles with RMDs.

     

Have you inherited an IRA? Review the rules that apply to you


Frequently asked questions

  • Does Fidelity do the calculations for my RMD?

    Yes, we will calculate RMDs on IRAs you hold with Fidelity.

  • How is my RMD calculated?

    Your RMD is generally determined by dividing your tax-deferred retirement account balance as of December 31 of the preceding year by a life expectancy factor. Your life expectancy factor corresponds with your age in the IRS Uniform Lifetime Table (PDF).

  • How do I avoid penalties?

    It’s important to withdraw your RMD by the appropriate deadline because the IRS penalty for missed RMD amounts is 25% for calendar years 2023 and beyond, and 50% for calendar years 2022 and earlier.

    For example, say you’re 74 years old and your RMD for calendar year 2023 was $10,000, but you only withdrew $5,000 by December 31. The 25% penalty would apply to the remaining $5,000 you did not take on time. This means that you may owe the IRS $1,250 for not taking your RMD by the deadline.

    If you miss an RMD, you can ask the IRS for a waiver of the penalty. You can find information 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.

  • 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.

  • What do I do if I don't see my RMD in the Retirement Distribution Center (RDC)?

    Clients of Fidelity can view their RMD activity in the Retirement Distribution Center (RDC)Log In Required for IRAs held with Fidelity. If you recently transferred an account to Fidelity from another financial institution, your RMD amount will not appear in the RDC because we don't know what your prior year-end balance was. In this instance, you can use our RMD Calculator to determine your RMD for this year, and we will provide your calculated amount in subsequent years.  

  • Can I withdraw my total RMD from one of my retirement accounts?

    If you have multiple IRAs, you have the option to take all your RMDs from a single IRA. You may also choose to withdraw RMDs from multiple 403(b) accounts from a single 403(b). If you have multiple 401(k) accounts, you must withdraw your RMD separately for 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 these IRA types.
    • The same RMD withdrawal methodology can be applied to 403(b)s. 403(b) RMDs cannot be aggregated with non-403(b) RMDs.
    • For 401(k) and or Fidelity Retirement Plan accounts: RMDs must be calculated separately for each account and the calculated amount must be taken from its respective account.
  • 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.

  • 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.

    Withdrawing from a Roth IRA will not count toward meeting the RMD for IRAs or retirement accounts that do have a requirement to withdraw.

    You always have the option to convert your Traditional IRA into a Roth IRA. However, if you’re age 73 or older, you will have to take your RMD for the year before you convert. Remember, a Roth conversion is a taxable event. We encourage you to speak to a tax advisor about how a conversion could impact the taxes you owe.

  • 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 your RMD for the year from your IRA, you can convert all or part of the remaining balance to a Roth IRA at any time. Our  Roth Conversion Calculator can help you decide if a Roth conversion is right for you. Remember a Roth conversion is a taxable event. We encourage you to speak to a tax advisor about how a conversion could impact the taxes you owe.

  • 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, if you are still working, and you do NOT own more than 5% of the business you work for, 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 until you retire.

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

    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.

  • How can I make my retirement savings last?

    No one wants to be 10 years into retirement and realize they have to return to work in order to pay the bills. Fidelity research finds that people should plan for their savings and pensions to replace 45% of their pretax, pre-retirement income, with the rest coming from Social Security.

    You can potentially avoid running out of money by setting up 3 buckets for your savings: emergency, protection, and growth. Your protection bucket should have enough savings to fund your day-to-day life. Fidelity recommends keeping at least 3 to 6 months of essential expenses in your cash emergency fund.

    The right amount of savings to have in your protection bucket depends on factors like your expected lifespan, retirement age, and your desired lifestyle.

  • Where can I find more information on RMDs?

    IRS.gov has all the details on RMDs that need to be taken every year.

Time to take action

  1. Know your deadline options

    The year you turn 73, you have a one-time option to delay your first RMD until April 1 of the following year. Keep in mind, if you chose to delay, you'll need to take your second RMD by the end of that same calendar year. All other years afterward, your deadline is December 31. See the pros and cons of delaying.

  2. Determine what you want to do with the RMD money

    Some popular options include:

    Invest it: Consider depositing to a Fidelity brokerage account.
    Save or spend it: Consider a Fidelity Cash Management account or linking a bank accountLog In Required.
    Donate it: See FAQs below on how.

  3. Take your RMD

    In a few clicks, simply transfer your Fidelity RMD amount to any taxable account, and you’re done for the year!


    (Note: If you don’t have enough cash in your retirement account, you may need to sell investments first.)


Have you inherited an IRA? Review the rules that apply to you


Frequently asked questions

  • What's a required minimum distribution (RMD)?

    Starting when you're age 73, a required minimum distribution (RMD) is a specific amount of money the IRS requires you to take from your tax-deferred retirement accounts each year.

  • What should I consider before taking my RMD?

    Be prepared. Have a plan for where your RMD(s) will go. If you are interested in continuing to grow and protect your money, reinvesting your RMD in a Fidelity taxable account may be a good option. Will you need the money for everyday and other expenses? If so, you may consider transferring your RMD to a Fidelity cash management account.1 If you don’t have an existing Fidelity taxable account, or cash management account, you may decide to establish one or the other prior to taking the RMD(s) from your retirement account(s).

  • What types of retirement accounts have RMDs?

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

  • How is my RMD calculated?

    Your RMD is generally determined by dividing your tax-deferred retirement account balance as of December 31 of the preceding year by a life expectancy factor. Your life expectancy factor corresponds with your age in the IRS Uniform Lifetime Table (PDF).

  • Does Fidelity do the calculations for my RMD?

    Yes, we will calculate RMDs on IRAs you hold with Fidelity.

  • How do I take an RMD from a Fidelity IRA?

    Withdrawing online is the easiest way 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
    • Chose your tax withholding amount(s)
    • If necessary, sell your investments to make cash available to withdraw
  • What do I do if I don't see my RMD in the Retirement Distribution Center (RDC)?

    Clients of Fidelity can view their RMD activity in the Retirement Distribution Center (RDC)Log In Required for IRAs held with Fidelity. If you recently transferred an account to Fidelity from another financial institution, your RMD amount will not appear in the RDC because we don't know what your prior year-end balance was. In this instance, you can use our RMD Calculator to determine your RMD for this year, and we will provide your calculated amount in subsequent years.  

  • How do I avoid penalties?

    It’s important to withdraw your RMD by the appropriate deadline because the IRS penalty for missed RMD amounts is 25% for calendar years 2023 and beyond, and 50% for calendar years 2022 and earlier.

    For example, say you’re 74 years old and your RMD for calendar year 2023 was $10,000, but you only withdrew $5,000 by December 31. The 25% penalty would apply to the remaining $5,000 you did not take on time. This means that you may owe the IRS $1,250 for not taking your RMD by the deadline.

    If you miss an RMD, you can ask the IRS for a waiver of the penalty. You can find information 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.

  • 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.

  • Can I withdraw my total RMD from one of my retirement accounts?

    If you have multiple IRAs, you have the option to take all your RMDs from a single IRA. You may also choose to withdraw RMDs from multiple 403(b) accounts from a single 403(b). If you have multiple 401(k) accounts, you must withdraw your RMD separately for 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 these IRA types.
    • The same RMD withdrawal methodology can be applied to 403(b)s. 403(b) RMDs cannot be aggregated with non-403(b) RMDs.
    • For 401(k) and or Fidelity Retirement Plan accounts: RMDs must be calculated separately for each account and the calculated amount must be taken from its respective account.
  • 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, if you are still working, and you do NOT own more than 5% of the business you work for, 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 until you retire.

  • 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.

  • What should I do with my RMDs?

    You have plenty of options for how to use your RMDs. Among them:  

    Living expenses if you plan to use RMDs to pay for current expenses. It often makes sense to have a budget in retirement. Going through the budgeting process can help you estimate living expenses, manage your cash flow, and determine if you’ll need to use your RMDs to fund your retirement lifestyle.  

    For some retirees, Social Security and other income may cover expected expenses. Remember even though you may not need RMD monies to fund your retirement spending, you’re still required to take them out of your applicable retirement account(s). You could put your RMD(s) into taxable brokerage accounts and invest the proceeds according to a strategy that fits your needs.  

    Charitable donations: If you have to satisfy an RMD and you would also like to make a gift to charity, then consider a qualified charitable distribution (QCD). A QCD is a direct transfer of funds from your IRA, payable to a qualified charity. Once you’ve reached RMD age, the QCD amount counts toward your RMD for the year, up to an annual maximum of $100,000 per individual, or $200,000 for married couple filing jointly ($100,000 from each of their respective IRAs). QCDs are not included in your gross income and don’t count against limits on deductions for charitable contributions. QCDs can have significant advantages for certain high-income earners.

  • Will the required starting age for RMDs change again in the future?

    Yes, the age to start taking RMDs increased to age 73 in 2023 and will increase to 75 in 2033. SECURE 2.0: Rethinking retirement savings.

  • 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.

    Withdrawing from a Roth IRA will not count toward meeting the RMD for IRAs or retirement accounts that do have a requirement to withdraw.

    You always have the option to convert your Traditional IRA into a Roth IRA. However, if you’re age 73 or older, you will have to take your RMD for the year before you convert. Remember, a Roth conversion is a taxable event. We encourage you to speak to a tax advisor about how a conversion could impact the taxes you owe.

  • 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 your RMD for the year from your IRA, you can convert all or part of the remaining balance to a Roth IRA at any time. Our  Roth Conversion Calculator can help you decide if a Roth conversion is right for you. Remember a Roth conversion is a taxable event. We encourage you to speak to a tax advisor about how a conversion could impact the taxes you owe.

  • Where can I find more information on RMDs?

    IRS.gov has all the details on RMDs that need to be taken every year.

Get yourself ready

  1. Open any taxable accounts you may need

    At age 73, you’ll likely want to transfer your RMD amount to a taxable account annually. To get ready, consider opening the account(s) that fit with your goals for the RMD money:

    Invest it: Consider depositing to a Fidelity brokerage account.
    Save or spend it: Consider a Fidelity Cash Management account1 or linking a bank accountLog In Required.

  2. Talk with your tax advisor
    The money you take from a retirement account, including your RMD, counts as taxable income. Check with a tax advisor to understand and plan for any impact on your taxes.

  3. Think about consolidating with Fidelity to make life easier**
    Remember: We do all the RMD calculations for your Fidelity accounts. Any retirement accounts you have elsewhere? With a quick account transfer, we could handle those as well.


Have you inherited an IRA? Review the rules that apply to you


Frequently asked questions

  • Can I withdraw money from my IRA?

    You can withdraw money from an IRA before the age of 73 but if you withdraw before turning 59½, you’ll pay a 10% penalty in addition to ordinary income tax on your withdrawal. After 59½, a withdrawal from a traditional IRA does not carry a 10% penalty.

  • What's a required minimum distribution (RMD)?

    Starting when you're age 73, a required minimum distribution (RMD) is a specific amount of money the IRS requires you to take from your tax-deferred retirement accounts each year.

  • What should I consider before taking my RMD?

    Be prepared. Have a plan for where your RMD(s) will go. If you are interested in continuing to grow and protect your money, reinvesting your RMD in a Fidelity taxable account may be a good option. Will you need the money for everyday and other expenses? If so, you may consider transferring your RMD to a Fidelity cash management account.1 If you don’t have an existing Fidelity taxable account, or cash management account, you may decide to establish one or the other prior to taking the RMD(s) from your retirement account(s).

  • Can I convert a traditional IRA to a Roth IRA?

    Yes, converting a traditional IRA to a Roth IRA lets you transfer all or portion of your traditional accounts into a Roth IRA. But it comes with a tax bill. Because contributions to a traditional IRA may be tax-deductible, income taxes are typically due on distributions from the account – and that includes conversions. You would have to pay income taxes on all the pre-tax contributions and tax deferred investment earnings converted to a Roth IRA.  

  • How much do I need to retire?

    Our Fidelity viewpoint suggests, when saving for retirement, aim to save 1X your income by the age of 30, 3X by 40, 6X by 50, 8X by 60, and 10X by 67.

  • Where can I find more information on RMDs?

    IRS.gov has all the details on RMDs that need to be taken every year.

Resources

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5 Questions with Fidelity: RMDs

Understand required distributions to avoid errors.

Video

RMD Calculator

Have retirement accounts elsewhere? Calculate your RMD now.

Tools

Making sense of RMDs

Get the answers to frequently asked questions about RMDs.

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What's ahead for your RMDs

Make sure to take your required withdrawals this year, then start to plan ahead.

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Questions?

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