When do required minimum distributions (RMDs) start and how are they calculated?

RMDs are mandatory withdrawals the IRS forces you to take from tax-deferred accounts like traditional IRAs and 401(k)s, starting at age 73 (rising to 75 in 2033 under SECURE 2.0). Roth IRAs have no RMDs during the owner's lifetime. To calculate one, take your account balance as of December 31 of the prior year and divide by the life-expectancy factor for your age from the IRS Uniform Lifetime Table. At 73, that factor is 26.5, so a $500,000 IRA requires a roughly $18,868 withdrawal. You add up balances across IRAs and can take the total from any one of them, but 401(k)s are calculated and withdrawn separately. Estimate yours at wealthserene.com/tools/rmd-calculator.