Required minimum distributions start at 73 for people born from 1951 through 1959 and at 75 for anyone born in 1960 or later. The first one is about 3.8% of what the account held the previous December 31, and the share rises every year after. Taking them is mechanical; your custodian will usually tell you the amount. The decisions that change how much tax they cost are made in the 10 or 15 years before they start.
The RMD glossary entry covers the basic rules: the April 1 first-year deadline, the 25% penalty, and which accounts can be combined. This page is about planning around them.
How big they get
Each year’s amount is the prior year-end balance divided by a factor from the IRS Uniform Lifetime Table. The factor shrinks as you age, so the required share grows.
That’s 3.8% at 73, about 5% at 80 and 8.2% at 90. If the account keeps growing, the dollar amounts climb faster than the chart shows. Someone with $2 million in pre-tax accounts at 73 starts with about $75,000 a year of required income before Social Security, a pension or anything else.
Why the size matters
Every dollar comes out as ordinary income. A large distribution can push you into a higher bracket, make up to 85% of your Social Security taxable, and lift Medicare premiums above the $218,000 joint line ($109,000 single) where Part B goes from $202.90 to $284.10 a month each in 2026.
It’s harder for a survivor. When one spouse dies, the distributions usually continue, but the survivor soon files as a single person, whose brackets are about half as wide: in 2026 the 22% bracket ends at $105,700 of taxable income for a single filer against $211,400 for a couple. The same income is taxed at a higher rate on less Social Security.
The planning window before 73
- Roth conversions. The years between retiring and 73 or 75 are often your lowest-income years. Converting some pre-tax money then, at 12% or 22%, shrinks the balance the distributions are figured on. See how to size a Roth conversion.
- Drawing on pre-tax accounts first. Living on IRA withdrawals in your 60s, sometimes while waiting to claim Social Security, can even out your income across retirement. See when to claim Social Security.
- Where the money is held. A Roth 401(k) has no required distributions during your life, and your current employer’s plan can wait if you’re still working and own 5% or less of the company. A traditional IRA has no such exception.
- Choosing the right table. If your spouse is your only beneficiary and is more than 10 years younger, you use the IRS joint table, which gives a smaller required amount.
Once distributions start
- Give from the IRA. From 70½, qualified charitable distributions go straight to a charity, count toward your requirement and stay out of your income. If you give anyway, this is usually the cheapest way.
- Use withholding instead of estimates. Tax withheld from an IRA distribution is treated as paid in equal parts through the year, unless you choose otherwise. Taking a large distribution in December with enough withheld can cover the year’s tax without quarterly estimated payments.
- Take it from the right account. With several IRAs you can take the total from any of them, and the same goes for 403(b)s. Each 401(k) needs its own distribution.
- Take the requirement before converting. The amount required for the year can’t be rolled over or converted to a Roth, so the distribution comes first.
Common mistakes
- Delaying the first one to April 1 without noticing it means two taxable distributions in the same year.
- Missing a distribution from an old 401(k) or a small IRA you’d forgotten. Consolidating accounts before 73 makes this less likely; see rollovers.
- Waiting until 72 to plan. By then the conversion window has mostly closed.
- Forgetting the heirs. Most beneficiaries other than a spouse must empty an inherited IRA within 10 years, and if you’d already started distributions, they generally take some each year. See the inheritance guide and check your beneficiary designations.
Questions to ask an advisor
| Ask | A good answer includes |
|---|---|
| What will my distributions be at 73, 80 and 85? | Dollar figures from your balances and expected growth |
| Which bracket will they put me in, and my spouse alone? | Both the joint and the single-filer projection |
| Should I convert some of it first, and how much a year? | Amounts tied to a bracket and the Medicare lines |
| How would you use charitable gifts? | Qualified charitable distributions, if you give |
| How are you paid, in dollars a year? | One figure; no commission on products bought with the distribution |
When an advisor is worth it, and what it costs
If your pre-tax balance is modest and your income in retirement is stable, the custodian’s calculation and a calendar reminder may be all you need. A planner is worth it when the balance is large enough that distributions will push your bracket up, when you’re in the window before 73, when you give to charity, or when you want the survivor’s tax picture worked out.
The core analysis fits a one-time plan, a median $2,000 (middle half $845 to $3,600), or a few hours at a median $300. If you’ll be converting each year and want withdrawals coordinated with taxes, ongoing planning has a median of $4,500 a year. An advisor who charges 1% of assets on a $1.5 million IRA costs $15,000 a year; read whether 1% is too much before choosing that route.
How to find one
Distribution planning is tax work. Start with the tax planning specialty or the retirement planning specialists. If you’re already retired, see advisors for retirees and everyone who serves retirees in the public graph; if you’re still in the window before 73, advisors for pre-retirees. Where heirs and charitable giving matter, the estate planning specialty helps too.