Hi, Debbie0907!
Required minimum distributions (RMDs) are the minimum amounts you must withdraw from your retirement accounts each year. You generally must start taking withdrawals from your traditional IRA, SEP IRA, SIMPLE IRA, and retirement plan accounts when you reach age 72 (73 if you reach age 72 after Dec. 31, 2022).
Account owners in a workplace retirement plan (for example, 401(k) or profit-sharing plan) can delay taking their RMDs until the year they retire, unless they're a 5% owner of the business sponsoring the plan.
The rules just recently changed, and it can be confusing, so let me try to explain the different RMD dates:
Beginning in 2023, the SECURE 2.0 Act raised the age that you must begin taking RMDs to age 73. If you reach age 72 in 2023, the required beginning date for your first RMD is April 1, 2025, for 2024.
If you reach age 73 in 2023, you were 72 in 2022 and subject to the age 72 RMD rule in effect for 2022. If you reach age 72 in 2022,
- Your first RMD is due by April 1, 2023, based on your account balance on December 31, 2021, and
- Your second RMD is due by December 31, 2023, based on your account balance on December 31, 2022.
As for your second question on how much has to be withdrawn under the RMD rules - the answer is, it depends.
Generally, a RMD is calculated for each account by dividing the prior December 31 balance of that IRA or retirement plan account by a life expectancy factor that the IRS publishes in Tables in Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs). Choose the life expectancy table to use based on your situation.
Joint and Last Survivor Table II - use this table if the sole beneficiary of the account is your spouse and your spouse is more than 10 years younger than you.
Uniform Lifetime Table III - use this if your spouse is not your sole beneficiary or your spouse is not more than 10 years younger
Single Life Expectancy Table I - use this if you are a beneficiary of an account (an inherited IRA)
So, to answer your second question, you would have to look up your age (and possibly your spouse's age) on the appropriate table that is in IRS Publication 590B to determine the amount you need to withdraw as your RMD each year.
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