Making sense of RMDs

Get the answers to frequently asked questions about RMDs.

  • Required minimum distributions
  • RMD Calculator
  • Required minimum distributions
  • RMD Calculator
  • Required minimum distributions
  • RMD Calculator
  • Required minimum distributions
  • RMD Calculator
  • Required minimum distributions
  • RMD Calculator
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Once you reach age 72* you're required to withdraw a certain amount of money from your retirement plans, such as IRAs, 401(k)s, and 403(b)s each year. That amount is called a required minimum distribution (RMD). Here are some answers to frequently asked questions to help you get started:

What's a required minimum distribution (RMD)?

A required minimum distribution (RMD) is a yearly mandatory withdrawal from tax-deferred retirement accounts that starts when the account owner reaches the age of 72.

What's the deadline for taking a required minimum distribution?

After reaching age 72, the deadline for taking a required minimum distribution (RMD) is December 31 each year. However, if this is your first RMD you have the option to delay it until April 1 of the year following the year you reach age 72.

If a required minimum distribution (RMD) is not taken by the annual deadline, it could result in an IRS penalty equal to 50% of the amount not taken on time.

Do I have to take my required minimum distribution if I am still working?

If you continue working past age 72, you have to take a required minimum distribution (RMD) from your IRA. However, you may qualify for an exception from taking RMDs from your current workplace saving plan, 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
  • You have an employer-sponsored retirement account with 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.

How do I calculate my required minimum distribution (RMD) from an IRA?

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).

However, if your spouse is your sole beneficiary and is more than 10 years younger than you, you will use the IRS Joint Life and Last Survivor Expectancy Table (PDF).

You can also calculate your own RMD by using our RMD Calculator.

What types of retirement accounts have required minimum distributions (RMDs)?

After reaching age 72, required minimum distributions (RMDs) must be taken from these types of tax-deferred retirement accounts:

  • Traditional, rollover, SIMPLE, and SEP IRAs
  • Most 401(k) and 403(b) plans, including Roth 401(k)s
  • Most small-business accounts (self-employed 401(k), profit sharing plan, money purchase plan)

Can I withdraw my total required minimum distribution from one of my retirement accounts?

If you have multiple retirement accounts it's possible to take your required minimum distributon (RMD) from one, but it depends on the type of retirement account:

  • For 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)s: RMDs must be calculated separately for each account and taken individually from those accounts.

Any distribution from an account that requires an RMD will count toward that year's RMD. Amounts withdrawn in excess of that RMD amount do NOT reduce RMD amounts in future years.

You are not required to take RMDs from your own Roth IRA and cannot satisfy an RMD requirement with a withdrawal from a Roth IRA.

How do I take a required minimum distribution (RMD) from a Fidelity IRA?

Follow these steps to take a required minimum distribution (RMD) from a Fidelity IRA:

  1. Visit Accounts & Trade and select Transfer.
  2. Select Deposit, withdraw, or transfer money.
  3. Select the account from which you'd like to withdraw.
  4. Select where you'd like to direct your withdrawal, how much you'd like to withdraw, and what amount of taxes you'd like withheld.
  5. Review your information and submit your transfer.
  6. Track your RMD in the Activity & Orders tab in your Portfolio.

How do I set up an automatic required minimum distribution (RMD) from a Fidelity IRA?

It only takes a few minutes to set up automatic withdrawals for your required minimum distribution (RMD). To get started, visit automatic withdrawalsLog In Required and select the year for your automatic RMD withdrawals to begin.

Do I have to take a required minimum distribution if I inherited an IRA?

When you inherit an IRA, many of the IRS rules for required minimum distributions still apply. However, there may be additional rules based on your relationship to the original owner. Learn more about the RMD rules for inherited IRAs that apply to you.

How are required minimum distributions (RMDs) taxed?

When taking a required minimum distribution (RMD), the money is taxed as ordinary income and as a result it may be subject to both federal and state taxes.

Can I lower my taxable income with a qualified charitable distribution (QCD)?

If you are looking for ways to lower your taxable income, you may want to consider donating your required minimum distribution (RMD) to charity. A qualified charitable distribution (QCD) is a direct transfer of money from your IRA that's payable to an eligible 501(c)(3) charitable organization, which can also satisfy your RMD.

Next steps to consider



Withdraw from your IRALog In Required

Process your RMD from your Fidelity IRA.



See your estimated RMDLog In Required

Let us help you take the guesswork out of managing your RMDs.



FAQs about RMDs

Get answers to frequently asked questions about RMDs.

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