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Get ahead of your required minimum distributions

December 2025 | 4 min read

Over all the years you’ve saved through employer-sponsored retirement plans and IRAs, you may have had the benefit of pretax contributions. When you retire and start withdrawing your savings, the taxes finally come due on the money you take out. But what if you have other income and don’t take out the money? What if you take out some money, but not very much? Required minimum distributions, or RMDs, ensure that retirement funds eventually are distributed and taxed.

When you reach your RMD age, you are required to withdraw at least a certain amount of your savings each year from your pretax retirement accounts and pay the taxes, even if you don’t need the money. RMDs can impact your taxable income and financial planning, so it’s important to understand what’s required and plan ahead. Some of the rules for RMDs changed with the SECURE 2.0 Act, so let’s look at what you need to know.¹

Who needs to take RMDs?

If you have an employer-sponsored retirement plan like a 401(k), 403(b) or 457(b), you’ll need to take RMDs on your pretax savings. If you own a traditional IRA, SEP IRA or SIMPLE IRA, you also must take RMDs. You do not have to take RMDs on Roth IRAs, since contributions were made after taxes were paid. And as of 2024, you also do not have to take RMDs on Roth accounts within an employer-sponsored retirement plan.

When are RMDs due?

If you have not yet started taking RMDs, they will begin in the year you turn 73. You have until April 1 of the year after you turn 73 to take the first full RMD. After that, RMDs must be taken by December 31 each year. If you turned 72 in or prior to 2022, you should already be taking RMDs. In 2033 the RMD age will rise to 75.

Although first-time RMDs don’t have to be taken until April 1 of the year after you reach your RMD age, keep in mind that if you take your RMDs after December 31 of the year you turn 73 (that is, between January 1 and April 1 the following year), your second RMD must still be taken by December 31 of the same year. This could increase the taxes you might owe on the RMD by pushing you into a higher tax bracket. Check to see if this might affect you.

First RMD deadline—April 1 of the year after you turn 73
Subsequent RMD deadlines—December 31 annually

How much do you need to take?

The amount of your annual RMD is based on your pretax account balances as of December 31 of the prior year. So for your first RMD, that would be December 31 of the year you turned 72. That amount is then divided by your distribution period, which is determined by the IRS based on your age. In most cases you’ll use the IRS’s Uniform Life Table to find your distribution period. If your spouse is more than 10 years younger and is your sole beneficiary, you may use the Joint and Last Survivor Table, which often results in a smaller RMD.

Most retirement plan providers can calculate your RMDs for you on any accounts you have with them and may offer automatic distributions so you’re less likely to miss the deadlines. But remember that you are ultimately responsible for making sure RMDs are taken, as you may need to contact multiple providers to calculate and take your RMDs for all accounts.

RMD amount—Pretax account balance on December 31 of the prior year ÷ distribution period. Example for age 73: $250,000 ÷ 26.5 years = $9,434*

*This example is hypothetical and for educational use only. Consult your retirement plan provider(s) for help with the RMD amount(s) that apply to you.

How does it work if you have multiple accounts?

Many people end up with multiple retirement accounts by the time they retire. You might have several employer-sponsored retirement plans as well as IRAs, and they might be with different financial companies. This is where it can get tricky. RMDs must be taken for each retirement account you have. In some cases, if you have multiple accounts of the same type—for example, multiple IRAs or multiple 403(b)s—you can add your balances together, calculate the RMDs, and then take the withdrawals any way you want—from just one of the accounts or split up between them. However, you cannot satisfy your RMD requirement for your IRA by taking a distribution from a 403(b) account, and you cannot satisfy the requirement for your 403(b) account by taking a distribution from an IRA. Any other type of retirement accounts, like 401(k)s and 457(b)s, must each be treated separately.

For example, if you’re 73 and have two pretax IRAs that had a combined balance of $100,000 at the end of last year, your total RMD for those accounts would be $3,774, assuming a distribution period of 26.5. You can take the whole $3,774 from either account or some of it from one and the rest from the other, as long as the total amount withdrawn adds up to $3,774. If you also have a 403(b) employer-sponsored retirement plan, you would need to calculate and take RMDs separately from that account.

You can treat multiple 403(b) plans the same way, pooling the totals and taking the RMD as you please between accounts. But again, any other type of retirement account would need to be treated separately.

If you have multiple retirement accounts and want to help simplify the RMD process, consider consolidating some or all of them. Just be sure that you consider the benefits and drawbacks of each account carefully before moving your money so you don’t lose any important benefits you may be getting.

How will RMDs affect taxes?

The RMDs you take from retirement accounts are taxed as ordinary income, so they’ll need to be accounted for as part of your income in any given year. If your RMDs are more than what you’re already taking out, they will add to your total income and may push you into a higher tax bracket, depending on how much they are and how close your income is to the next tax bracket.

RMDs can also trigger or increase surcharges for Medicare Parts B and D premiums if they push your income higher. The surcharges are referred to as IRMAA, which stands for income-related monthly adjustment amount, and they can be quite substantial. There are no Medicare surcharges if your modified adjusted gross income used to determine your premiums is at or below the annual threshold, but above that, surcharges kick in and go up as your income increases. If you’re a married couple filing jointly, the threshold is about double.

A tax professional can help you address this as part of your financial planning strategy.

Missing RMDs can be costly

Timing is critical when it comes to taking your RMDs since missing the deadlines comes with a steep penalty. Prior to the SECURE 2.0 Act the penalty was 50% of the amount of RMDs not taken. While the penalty has been cut, it’s still 25%. If you correct the error quickly, it may be reduced to 10%.

Options for taking RMDs

Taking your RMDs on time and in the right amount will help you avoid penalties that could undermine your savings. However, having a proactive RMD strategy can help with your overall financial planning and potentially save you money.

For example, if you’re still working at age 73 and not an owner of 5% or more of the business sponsoring your plan, you may be eligible to delay RMDs on your employer-sponsored retirement plan. This may help keep your taxable income—and your taxes—lower while you’re still working and when you retire if you’re in a lower tax bracket once you begin taking your RMDs.

If you’re interested in donating to charity, qualified charitable distributions (QCDs) may be an option. If you’re 70½ or older, a QCD allows you to donate a certain amount directly from an IRA to a qualified charity. If you have an RMD obligation, this can satisfy some or all of your RMDs while excluding the amount from your taxable income.

What about RMDs on inherited retirement assets?

If you inherit an IRA or employer-sponsored retirement plan account, the rules for RMDs are different. In general, if you’re not the spouse of the original account holder, you’ll have to empty the account within a 10-year period. Spouses have more options, depending on their age. To learn more, check out our article on RMDs for inherited retirement accounts.

How can I get help with RMDs?

RMD rules are numerous and can be complex, depending on the accounts you have and your financial circumstances. Important factors to keep in mind are:

The due date of your first-time RMD—April 15 following the year you turn 73

The deadline for subsequent RMDs—December 31

The amount you’ll need to withdraw from each account

The tax implications of your withdrawal strategy

To calculate your estimated RMDs, you can use the RMD calculator on the Corebridge website.

You can also take a look at our FAQs for changes that took place with the SECURE 2.0 Act.

For help with an RMD strategy that’s right for you, contact your Corebridge financial professional. Reach out to us if you don’t have an assigned financial advisor.

¹ This information is general in nature, may be subject to change, and does not constitute legal, tax or accounting advice from Corebridge Financial employees, financial professionals or other representatives. Any tax statements in this material are not intended to suggest the avoidance of U.S. federal, state or local tax penalties.

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