What Is an RMD?

February 10, 2026

Share this article

What we’ll cover:

RMD is the minimum amount of money you have to withdraw from certain retirement accounts after a specific age.
RMD rules are outlined by the IRS, and failure to follow those rules could result in a penalty.
Given the complexity of RMD rules, consider consulting a tax professional to confirm your RMD obligations.

Note: All tax information contained in this article is as of the publication date. Be aware that tax rules are always subject to change, and the IRS website is your official source for the latest forms and guidance.

“RMD” stands for required minimum distribution, which is the minimum amount of money you have to withdraw from certain types of retirement savings accounts each year after a specific age.

According to the IRS, if RMD rules apply to your retirement plan accounts, you generally have to start making withdrawals when you reach the age of 73. While some exceptions may apply, your withdrawals or distributions are usually subject to income tax.

Who has to take RMDs?

You’ll have to pay attention to RMD rules if you have any of the following retirement plans:

Traditional IRA
SEP IRA
SIMPLE IRA
401(k), 403(b), or 457(b) plans
Profit sharing plans
Other defined contribution plans

Of note, according to the IRS, you’re not required to take RMDs from Roth IRAs or from Designated Roth accounts in a 401(k) or 403(b) plan while the account owner is alive. However, keep in mind that beneficiaries of Roth accounts are subject to RMD rules.

When do you need to start taking RMDs?

In most cases, you have to start making withdrawals when you reach age 73.

According to the IRS, generally, you must take your first RMD by April 1 of the year following the year you turn 73. (This is known as your “required beginning date.”)

Then, you must take subsequent RMDs by December 31 of each year, starting with the year in which you were required to make your first withdrawal.

Consider this basic example from the IRS below.

If you reach age 73 in 2024, that means:

Your first RMD is due by April 1, 2025. (This is your 2024 RMD.)
You must then take a second RMD by December 31, 2025. (This is your 2025 RMD.)
Your third RMD is due by December 31, 2026. (This is your 2026 RMD.)

Good to know: In the IRS example above, you’ll notice that for the first year following the year you reach age 73, you generally have two required distribution dates:

a withdrawal on April 1 of the year following the year you turn 73 and
an additional withdrawal by December 31.

Per the IRS, you may choose to make your first withdrawal by December 31 of the year you turn 73 instead of waiting until April 1 of the following year. This would allow the distributions to be included in your income in separate tax years.

For more examples and details, visit IRS.gov.

Consult a financial or tax advisor if you’re nearing your RMD age

Be aware that the RMD timing and calculation rules set forth by the IRS can be complex and are always subject to change. You should always consult the IRS website or a tax professional for the latest guidance, especially if you’re approaching your RMD age.

Working with a tax professional can help ensure you’re taking your RMDs on time and in the correct amount. A tax expert can also help you understand the tax implications of your distributions and help you plan your RMDs accordingly.

This is important: Failure to take RMDs correctly can result in costly penalties.

This article is for informational purposes only and is not a substitute for individualized professional tax advice. Individuals should consult their own tax advisor for matters specific to their own taxes. This article was prepared by and approved by Marcus by Goldman Sachs, but does not reflect the institutional opinions of The Goldman Sachs Group, Inc., Goldman Sachs Bank USA, Goldman Sachs & Co. LLC or any of their affiliates, subsidiaries or divisions. Goldman Sachs Bank USA and Goldman Sachs & Co. LLC are not providing any financial, economic, legal, accounting, tax or other recommendations in this article. Information and opinions expressed in this article are as of the date of this material only and subject to change without notice. Information contained in this article does not constitute the provision of investment advice by Goldman Sachs Bank USA, Goldman Sachs & Co. LLC or any of their affiliates. Neither Goldman Sachs Bank USA, Goldman Sachs & Co. LLC nor any of their affiliates makes any representations or warranties, express or implied, as to the accuracy or completeness of the statements of any information contained in this document and any liability therefore is expressly disclaimed. You are not permitted to publish, transmit, or otherwise reproduce this information, in whole or in part, in any format without the express written consent of Goldman Sachs. This foregoing restriction includes, without limitation, using, extracting, downloading or retrieving this information, in whole or in part, to train or finetune a machine learning or artificial intelligence system.