Non-spouse beneficiaries must deplete inherited accounts within 10 years under SECURE Act Surviving spouses can treat inherited IRA as their own or remain beneficiary Minor children must begin the 10-year rule upon reaching majority age Eligible designated beneficiaries include spouses, minors, disabled, and chronically ill

Start RMDs by April 1st following your 73rd birthday to avoid penalties Consider Roth conversions and QCDs as tax-efficient RMD management strategies Calculate RMDs separately for each account type using appropriate IRS tables Plan ahead, proactive RMD management can meaningfully reduce lifetime tax burden

Curated by: Rubric Advisors

Retirement Planning

Required Minimum Distributions (RMDs)

Required Minimum Distributions begin at age 73 under SECURE Act 2.0 and require careful planning to minimize tax impact. Strategic use of Roth conversions and Qualified Charitable Distributions can help manage RMD obligations effectively.

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Required Minimum Distribution Basics

RMDs force withdrawals from tax-deferred retirement accounts starting at age 73
Applies to traditional IRAs, 401(k)s, 403(b)s, and similar employer plans
Roth IRAs are exempt from RMDs during the owner's lifetime
First RMD must be taken by April 1st following your 73rd birthday

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Required Minimum Distribution Basics

RMDs force withdrawals from tax-deferred retirement accounts starting at age 73
Applies to traditional IRAs, 401(k)s, 403(b)s, and similar employer plans
Roth IRAs are exempt from RMDs during the owner's lifetime
First RMD must be taken by April 1st following your 73rd birthday

SECURE Act 2.0 Changes

RMD age increased from 72 to 73 for those born 1951-1959
RMD age increases to 75 for individuals born in 1960 or later
Changes apply only to account owners, not inherited account beneficiaries
Existing RMD recipients continue with current schedules unaffected

RMD Calculation and Penalties

RMD equals prior year-end account balance divided by IRS life expectancy factor
Use Uniform Lifetime Table unless spouse is sole beneficiary and 10+ years younger
Missed RMDs incur a 25% excise tax, reduced to 10% if corrected within two years
IRS may waive penalties for reasonable errors with timely correction

RMD Minimization Strategies

Roth conversions before age 73 reduce future RMD account balances
Qualified Charitable Distributions allow direct IRA-to-charity transfers up to $105,000
QCDs count toward RMD requirements while excluding income from taxation
Consider asset location strategies to minimize tax impact of required withdrawals

Inherited IRA Rules

Non-spouse beneficiaries must deplete inherited accounts within 10 years under SECURE Act
Surviving spouses can treat inherited IRA as their own or remain beneficiary
Minor children must begin the 10-year rule upon reaching majority age
Eligible designated beneficiaries include spouses, minors, disabled, and chronically ill

Aggregation and Distribution Rules

Multiple traditional IRAs can be aggregated, total RMD taken from any combination
401(k) and similar employer plans require separate RMD calculations per account
Inherited IRAs cannot be aggregated with your own retirement accounts
Life expectancy factors decrease each year, increasing required withdrawal amounts

Key Takeaways

Start RMDs by April 1st following your 73rd birthday to avoid penalties
Consider Roth conversions and QCDs as tax-efficient RMD management strategies
Calculate RMDs separately for each account type using appropriate IRS tables
Plan ahead, proactive RMD management can meaningfully reduce lifetime tax burden

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The information above is for educational purposes only and does not constitute investment advice, a recommendation, or a solicitation to buy or sell any security. Any historical figures are for illustration only, and past performance does not guarantee future results. Tax laws, regulations, and contribution limits change frequently, the details here may become outdated. Individual circumstances vary. Consult a qualified financial advisor, CPA, or attorney for guidance specific to your situation. Rubric Advisors is registered with the California DFPI; registration does not imply a certain level of skill or training.

Required Minimum Distributions (RMDs)

Required Minimum Distribution Basics

SECURE Act 2.0 Changes

RMD Calculation and Penalties

RMD Minimization Strategies

Inherited IRA Rules

Aggregation and Distribution Rules

Key Takeaways

Required Minimum Distribution Basics

SECURE Act 2.0 Changes

RMD Calculation and Penalties

RMD Minimization Strategies

Inherited IRA Rules

Aggregation and Distribution Rules

Key Takeaways

Related Topics

Tax-Smart Retirement Income Planning

401(k) Withdrawal Rules

Maximizing Your 401(k) Contributions

Required Minimum Distributions (RMDs)

Required Minimum Distribution Basics

SECURE Act 2.0 Changes

RMD Calculation and Penalties

RMD Minimization Strategies

Inherited IRA Rules

Aggregation and Distribution Rules

Key Takeaways

Required Minimum Distribution Basics

SECURE Act 2.0 Changes

RMD Calculation and Penalties

RMD Minimization Strategies

Inherited IRA Rules

Aggregation and Distribution Rules

Key Takeaways

Related Topics

Tax-Smart Retirement Income Planning

401(k) Withdrawal Rules

Maximizing Your 401(k) Contributions