RMD at Age 73

Tax-deferred retirement accounts come with a deal: you skip tax going in, and the government eventually requires you to take money out. That requirement is the required minimum distribution (RMD), and under current US rules it begins at age 73. This guide covers the calculation, the deadlines that trip people up in their first year, and how the age has been shifting.

The RMD formula

The calculation is simpler than its reputation suggests — two numbers:

The balance is your account value on 31 December of the year before the distribution year — not today's balance. The life expectancy factor comes from the IRS Uniform Lifetime Table, which assigns a divisor to each age.

The factor at 73 is 26.5

The table's divisors shrink as you age, so the required percentage of your balance rises each year. Current factors around the starting age:

Worked example

You turn 73 this year, and your traditional IRA held $500,000 on 31 December last year:

$500,000 ÷ 26.5 = $18,868

That's your minimum withdrawal for the year. You may always take more — the "minimum" is a floor, not a cap — and the distribution is generally taxed as ordinary income.

Which accounts require an RMD

An aggregation quirk worth knowing: with multiple IRAs you calculate the RMD for each but may take the total from any one of them. 401(k)s don't work that way — each plan's RMD must come out of that plan.

Deadlines — and the first-year trap

Normally the deadline is 31 December each year. The exception is your first RMD, which may be delayed until 1 April of the following year.

That extension is a trap as often as a gift. Delaying your first RMD to April means taking two distributions in that calendar year — the delayed one plus that year's own, due by 31 December — potentially pushing you into a higher tax bracket, raising Medicare IRMAA premiums, and increasing the taxable portion of Social Security. Many advisers suggest taking the first RMD in the year you turn 73 instead, unless there's a specific reason not to.

The penalty for missing one

Missing an RMD is expensive: a penalty of 25% of the amount you failed to withdraw. SECURE 2.0 reduced this from the previous 50%, and added relief — the penalty drops to 10% if you correct the shortfall promptly (generally within a two-year correction window) and file the appropriate form. If you missed one for a reasonable cause, the IRS also has a waiver request process via Form 5329.

The starting age keeps moving

Three different ages have applied in recent years, which is why so much outdated advice circulates:

• 70½ — the rule before the original SECURE Act (2019).
• 72 — for those reaching that age between 2020 and 2022.
• 73 — current rule under SECURE 2.0, effective from 2023.
• 75 — scheduled to apply for those born in 1960 or later, from 2033.

Because the rules hinge on the exact year you reach a birthday, it's worth confirming your age precisely against the relevant date — our age calculator's "age at date" field does this, and the retirement age calculator covers the pension-age side.

A planning note: QCDs

If you're charitably inclined, a qualified charitable distribution lets those aged 70½ or older transfer funds directly from an IRA to a qualifying charity — up to an annually indexed limit — and it can count toward satisfying your RMD while being excluded from taxable income. Worth discussing with an adviser if it fits your situation.

Frequently asked questions

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