When Do RMDs Start for IRAs and 401(k)s?

For many employer plans, you may delay until you retire if your plan allows the still-working exception and you’re not a 5% owner. This exception doesn’t apply to IRAs.

After that first year, RMDs are due annually by December 31. Rules differ by account type, employment status, and whether the account is Roth or traditional.

What Is an RMD and Why It Matters

Tax-deferred accounts let investments grow without immediate income tax. Eventually, the IRS requires annual withdrawals so deferred taxes get paid. That annual minimum is your required minimum distribution (RMD). If you miss an RMD or withdraw too little, you risk penalties. But when you take RMDs on time, you can better manage tax brackets, Medicare surcharges, and charitable strategies.

When Do RMDs Start? (Age, Dates, Exceptions)

Let’s answer the headline clearly: when do RMDs start? For most people, RMDs begin in the calendar year you turn 73 if you were born 1951–1959. You can take that first RMD by December 31 of that year or delay it until April 1 of the following year. However, delaying the first RMD to April 1 means you must also take that year’s regular RMD by December 31. That can put two RMDs in one tax year and may increase income taxes or Medicare IRMAA. So plan the timing before year-end.

Traditional IRAs vs. Employer Plans

The statutory start age is 73 for those born 1951–1959. Your required beginning date (RBD) varies by account type and employment status:

• Traditional IRAs (including SEP and SIMPLE): Your first RMD is due by April 1 of the year after you turn 73 (or by December 31 in the year you turn 73 if you don’t delay). Working status doesn’t change IRA timing.
• 401(k)/403(b)/governmental 457(b): If the plan permits the still-working exception and you’re not a 5% owner, your first RMD is due by April 1 of the year after the year you retire. If the exception doesn’t apply, it’s due by April 1 of the year after you reach age 73.

Roth Accounts: Special Treatment

• Roth IRAs: No lifetime RMDs for the original owner.
• Roth 401(k)/403(b): For 2024 and later, designated Roth accounts in employer plans have no lifetime RMDs for the original owner. Rolling to a Roth IRA can still help with consolidation and flexibility, but avoiding RMDs is no longer the driver.

Quick Reference: Who Starts When?

Use this snapshot to estimate timing. As you approach your start date, always confirm with your plan documents and current IRS publications.

Coordinating the First Two Years

The April 1 rule creates a one-time choice that affects two calendar years of taxes. Here’s how it plays out:

• Option A (no delay): Take your first RMD by December 31 of the year you turn 73. Then take the next RMD by December 31 the following year (one RMD in each calendar year).
• Option B (delay): Delay your first RMD until as late as April 1 of the next year. You must also take that same year’s regular RMD by December 31 (two RMDs in the same calendar year).

Example

You turn 73 in June 2025. If you delay your first IRA RMD until March 2026, you still must take your 2026 RMD by December 31, 2026. That’s two taxable distributions in 2026. If that raises taxes or triggers IRMAA, consider taking the first RMD in 2025.

IRA vs. 401(k) Rules at a Glance

These contrasts can help you decide which account to tap first and how to simplify compliance.

How to Calculate Your RMD

The standard formula is simple:

1. Find your prior year-end balance (as of December 31).
2. Locate your life-expectancy factor on the IRS Uniform Lifetime Table.
3. Divide balance by factor. The result is your RMD for the current year.

If your spouse is more than 10 years younger and is your sole beneficiary, you may use the IRS Joint Life and Last Survivor Table. That usually lowers the required amount.

Operational Tips

• Multiple IRAs: Add up required amounts and take the total from any one (or a mix) of IRAs.
• Multiple 401(k)s: Calculate and distribute each plan’s RMD separately. Multiple 403(b)s: You may aggregate total 403(b) RMDs and take them from one or more 403(b) contracts.
• Automate: Many custodians will set an annual schedule with tax withholding so you don’t miss deadlines.

Penalties for Missing or Under-Withdrawing (and Fixes)

If you don’t take enough, the IRS can assess a 25% excise tax on the shortfall. If you correct within the statutory correction window and report on Form 5329, the tax may drop to 10%. The IRS can also waive penalties for reasonable error and prompt correction. Don’t ignore mistakes; address them quickly with your custodian and tax professional.

The Still-Working Exception for Employer Plans

If you’re still employed at 73 and your plan allows it, you may delay RMDs from your current employer’s plan until you retire, assuming you’re not a 5% owner. The exception doesn’t apply to IRAs, and it doesn’t cover balances in former employer plans. If you have old 401(k)s, consider consolidating well before RMD season so you don’t juggle multiple deadlines.

5% Owners: Different Rules

Own more than 5% of the company sponsoring the plan? The still-working exception doesn’t apply. RMDs begin at age 73 even if you continue to work. Be mindful of family attribution rules that may count certain relatives’ ownership toward your total. Document your ownership and confirm with plan administrators in advance.

Roth and Inherited Accounts: Special Considerations

Roth IRAs and Roth 401(k)/403(b) During Your Lifetime

Roth IRAs require no lifetime RMDs for the original owner. As of 2024, designated Roth accounts in 401(k) and 403(b) plans also have no lifetime RMDs for the original owner. Beneficiaries remain subject to post-death RMD rules.

Inherited IRAs and the 10-Year Rule (High Level)

Beneficiary rules are nuanced. Many non-spouse beneficiaries who inherit from someone dying in 2020 or later must empty the account by December 31 of the 10th year after death. If the decedent died on or after their required beginning date, annual RMDs may also be required in years 1–9 under proposed rules. Check current IRS guidance before acting. Eligible designated beneficiaries (such as a surviving spouse or a beneficiary who is disabled or chronically ill) may have life-expectancy payout options.

Smart Planning Moves Before RMDs Start

Understanding when do RMDs start is step one. Step two is shaping cash flow and taxes well in advance:

• Roth conversions in lower-income years: Converting ages 60–72 can shrink future RMDs. Watch federal brackets, IRMAA thresholds, and state taxes.
• Asset location: Place tax-inefficient, faster-growing assets where they’re least tax-burdensome. Hold income-heavy assets where cash flow and tax management are easier.
• Withholding strategy: Many retirees satisfy most annual tax liability by withholding from RMDs rather than making quarterly estimates.
• Qualified charitable distributions (QCDs): Starting at age 70½, you can donate directly from an IRA to an eligible charity. The annual limit is indexed for inflation ($105,000 for 2024 and $108,000 for 2025). QCDs can count toward your RMD and are excluded from taxable income. The check must go directly to the charity.
• Coordinate with Social Security: Large RMDs can increase the taxation of benefits. Consider smoothing income in the years leading up to your start date.

Case Studies

Case 1: IRA Only, Not Working

Profile: Dana turns 73 in September 2026 and has a traditional IRA. The year 2026 looks modest for income; 2027 will include a taxable home sale.

Decision: Dana takes the first RMD in December 2026, avoiding two RMDs plus the home-sale gain in 2027. Her approach levels out tax brackets and helps manage IRMAA.

Case 2: Still Working at 73 With a 401(k)

Profile: Carlos turns 73 in May 2025 and is still employed. His plan allows the still-working exception and he isn’t a 5% owner.

Decision: Carlos delays RMDs from the current employer plan until he retires at 75. He still must take IRA RMDs beginning at 73 because the exception doesn’t apply to IRAs.

Case 3: Multiple Accounts, Wants Simplicity

Profile: Mei holds three IRAs and two prior-employer 401(k)s.

Decision: Mei consolidates the old 401(k)s into an IRA (after confirming plan rules), aggregates IRA RMDs, and withholds taxes from a single distribution. She keeps one active 401(k) at her current employer and uses the still-working exception there.

Frequently Asked Questions

Can I satisfy all my RMDs from one account?

IRAs: Yes. You may aggregate IRA RMDs and take the total from any one or combination of IRAs. Employer plans: No. You must calculate and take each plan’s RMD separately. 403(b)s: You may aggregate across your 403(b) contracts. Verify first.

Do rollovers affect RMDs?

You can’t roll over a current-year RMD. Distribute the RMD amount first; then you can roll over remaining balances. If you consolidate late in the year, be careful not to move the RMD amount by mistake.

How do beneficiary designations factor in?

They control what happens to the account at death. A spouse may treat the account as their own. Many non-spouse beneficiaries must follow the 10-year rule, and some may also owe annual RMDs. Review designations annually and after major life events.

Will the start age change again?

Current law raises the RMD age to 75 beginning in 2033 for those born in 1960 or later. Congress may change rules in the future, so confirm specifics as you approach your required beginning date.

Practical Checklist for Your First RMD Season

1. List every account by type (traditional IRA, Roth IRA, 401(k)/403(b)/457(b)).
2. Confirm if the still-working exception applies to your active employer plan.
3. Decide whether to take your first RMD in the year you turn 73 or delay to April 1 of the next year, and model the tax impact both ways.
4. Set up withholding or plan estimated taxes to prevent penalties.
5. Consider QCDs if charitably inclined and age 70½+.
6. Update beneficiary designations and account titling.
7. Place a December 1 reminder to verify amounts and schedule distributions.

Key Takeaways

• Start date: For most, RMDs begin at age 73; you may delay the first to April 1 of the following year, but that can cause two RMDs in one calendar year.
• Account differences: IRAs offer no still-working exception; many employer plans do if you’re not a 5% owner and the plan permits it.
• Roth nuance: Roth IRAs and, from 2024 on, Roth employer plans have no lifetime RMDs for the original owner.
• Avoid penalties: Fix shortfalls promptly and, if applicable, file Form 5329 to seek the reduced 10% rate or a waiver for reasonable error.
• Plan ahead: Coordinate RMDs with tax brackets, Medicare thresholds, charitable giving, and Social Security timing.

Bottom Line

Knowing precisely when do RMDs start gives you leverage over your lifetime tax bill. Confirm your required beginning date, choose whether to take the first RMD in the year you turn 73 or delay to April 1 of the next year, and coordinate distributions with the rest of your income picture. With a short planning session each fall, and a quick check for rule updates, you’ll answer the question “when do RMDs start” with confidence and keep more of what you’ve earned.

This guide is for general education. Consult a qualified tax professional about your specific situation.