RMDs After 73: What Changes and What's Different for Roth Accounts

The Current Starting Age

Required Minimum Distributions — the amount the IRS requires you to withdraw each year from most tax-deferred retirement accounts — currently start at age 73. That's a result of the SECURE 2.0 Act, which raised the age from 72. It's set to rise again, to 75, starting in 2033. Which age applies to you depends on your birth year.

How the Amount Is Calculated

Your RMD is calculated by dividing your prior year-end account balance by an IRS life expectancy factor. The exact amount changes every year as both your balance and your factor change — it is not a fixed percentage, and it is not something to estimate from memory once you're in RMD territory.

Roth Accounts Are Now Different

One of the more significant recent changes: Roth 401(k) and Roth 403(b) accounts are no longer subject to RMDs during the original owner's lifetime, effective 2024. This aligns them with how Roth IRAs have always worked. If you've been automatically taking a distribution from a Roth 401(k) out of habit or because that's what your plan's default does, it's worth checking whether that's still required for you.

The Penalty for Missing One

Missing an RMD — or taking less than required — triggers an excise tax: 25% of the shortfall, reduced to 10% if you correct it within two years. That's a meaningful improvement from the prior 50% penalty, but it remains a fully avoidable cost with basic planning.

Planning Around RMDs

RMDs don't exist in isolation — they interact with Roth conversion planning (converting before RMDs start can reduce future RMD size), Medicare IRMAA surcharges (RMD income can push you into a higher premium bracket), and qualified charitable distributions (which can satisfy an RMD while excluding the amount from taxable income). The right sequencing depends on your full income picture, not just the RMD rule in isolation.

This article is for general educational purposes only and does not constitute tax advice. RMD rules are set by federal law and are subject to future legislative change. Consult a qualified tax advisor about how these rules apply to your specific accounts.