Required minimum distributions create a forced transition from saving to taxable withdrawals for many retirement accounts. The rule generally arrives at age 73, but the original owner of a Roth IRA can leave that account untouched for life, making account type as important as account balance when retirement cash flow is planned.
The age-73 trigger applies to traditional money
RMDs are designed to move tax-deferred savings into taxable income. Traditional IRAs, SEP IRAs and SIMPLE IRAs generally enter the system when the owner reaches 73, whether or not that person still works. Workplace plans can follow a later-retirement rule in some circumstances, but owners of more than 5% of the business do not receive that delay.
The IRS RMD guidance confirms that the first distribution is owed for the year age 73 is reached. That first payment may be postponed until April 1 of the next year, while later annual payments generally must leave the account by December 31. Delaying therefore can place two taxable withdrawals in one calendar year.
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A balance and a life-expectancy factor set the bill
The annual amount is generally calculated by dividing the prior December 31 account balance by a life-expectancy factor. Most owners use the Uniform Lifetime Table, while a separate joint table can apply when the sole beneficiary is a spouse more than 10 years younger. The result is a minimum, not a target: a retiree may withdraw more, but the excess does not reduce a later year’s requirement.
The current IRS Publication 590-B supplies the tables used for 2026 distributions and illustrates the calculation. Custodians often calculate an IRA’s amount, yet the legal responsibility remains with the owner. RMDs from multiple traditional IRAs may generally be aggregated and taken from one or more of them, while workplace-plan requirements usually must be satisfied plan by plan.
Roth IRAs preserve a lifetime escape hatch
A Roth IRA follows a fundamentally different bargain. Contributions are made with after-tax dollars, and qualified withdrawals are tax-free. Because the original owner never received an upfront deduction, federal rules do not compel lifetime distributions from that owner’s Roth IRA. That freedom can preserve a tax-free reserve for late-life expenses or heirs.
The distinction belongs to the account, not simply the word “Roth.” The IRS comparison of Roth accounts notes that beneficiary rules still apply after death. Heirs can face required withdrawals even though the original owner did not, so the exemption is a lifetime planning tool rather than a permanent shelter across generations.
Tax timing can outweigh investment timing
An RMD increases ordinary income in the year it is received. That income can affect the share of Social Security subject to tax, Medicare income-related premium adjustments in a later year and the amount available for other tax planning. A first-year delay is therefore not automatically valuable; concentrating two distributions into the next year can create a larger tax shock than taking the first one by December 31.
Account location offers another lever. Traditional balances are exposed to future RMDs, while Roth IRA balances are not. Partial Roth conversions before age 73 can shrink later required withdrawals, but the conversion itself creates taxable income. The tradeoff is between paying tax voluntarily in a selected year and accepting mandatory taxable income later.
Missed withdrawals carry a repair process
Owners should identify every affected account, obtain each calculated minimum and document the date and amount distributed. Employer-plan records deserve special attention after job changes because an old account can be overlooked while an IRA custodian sends more visible reminders. Qualified charitable distributions may satisfy part of an IRA RMD for eligible owners when executed directly under the applicable rules.
A shortfall can trigger an excise tax, although current law provides a lower rate when the mistake is corrected promptly. The durable lesson from the IRS framework is that age 73 starts a calendar of tax decisions, not merely a single withdrawal. Roth IRA money sits outside that lifetime calendar, giving households a valuable source of flexibility when other income is already high.
The agency’s tables also show why the required percentage generally rises with age: the life-expectancy divisor becomes smaller. That pattern can push more pretax money onto the return in later retirement, even as a household’s discretionary spending declines. Annual projections that include pensions, Social Security and planned asset sales can reveal whether an earlier conversion or charitable distribution would reduce that pressure.
Inherited Roth IRAs need separate attention because the original owner’s lifetime exemption does not pass through unchanged. Nonspouse beneficiaries frequently must empty an inherited account by the end of a 10-year period, even when no annual payment is required in a particular year. The beneficiary form, death date and relationship to the owner control that analysis, which is why estate planning should never reduce the rule to “Roths have no RMDs.”
This article was researched and drafted with AI assistance and reviewed against the linked primary sources.
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Warren Cohen is a finance writer based in Phoenix, Arizona, covering personal finance topics including credit, banking, and beginner investing. He earned his degree in business administration from Arizona State University and began his career working in consumer finance, where he gained direct experience with lending and credit systems. He now writes for personal finance websites and fintech platforms, focusing on clear, practical content that helps readers make informed financial decisions.
