Under SECURE Act 2.0, RMDs must begin at age 73 for those born between 1951-1959 (up from age 72).

The age increases to 75 for those born in 1960 or later.

Your first RMD must be taken by April 1 following the year you turn 73, with subsequent RMDs due by December 31 each year.

Delaying your first RMD means taking two distributions in one year, potentially pushing you into a higher tax bracket.

RMD = Account Balance (Dec 31 prior year) ÷ Life Expectancy Factor.

For example, at age 73 with $500,000 balance and factor 26.5: $500,000 ÷ 26.5 = $18,868 RMD.

The IRS Uniform Lifetime Table provides factors ranging from 27.4 (age 72) to 2.0 (age 120+).

Married individuals with spouses 10+ years younger use the Joint Life Table for lower RMDs.

Each retirement account type requires separate calculation, though you can withdraw the total from any traditional IRA.

SECURE Act 2.0 reduced the penalty to 25% of the shortfall (from 50%), further reducible to 10% if corrected within two years.

Example: $20,000 RMD missed = $5,000 penalty (25%), or $2,000 if corrected timely.

The IRS may waive penalties for reasonable cause (illness, error, financial institution mistake) via Form 5329.

Taking excess RMD one year doesn't reduce next year's requirement—each year stands alone.

RMDs apply to: Traditional IRAs, SEP-IRAs, SIMPLE IRAs, 401(k)s, 403(b)s, 457(b)s, and inherited retirement accounts (including inherited Roth IRAs).

Roth IRAs do NOT require RMDs during owner's lifetime (major tax planning advantage).

Starting 2024, Roth 401(k)s also exempt from RMDs while owner alive.

Still-working exception: Can delay 401(k) RMDs if still employed (not 5%+ owner) at the company.

Yes, Qualified Charitable Distributions (QCDs) allow direct transfers up to $105,000 annually (2024, indexed for inflation) from IRAs to qualified charities.

QCDs count toward RMD requirement but aren't included in taxable income—better than taking RMD and donating (which limits deduction to 60% AGI).

Must be age 70½+ (earlier than RMD age 73), and transfer must go directly from IRA custodian to charity.

Particularly valuable for taxpayers using standard deduction who can't itemize charitable gifts.

SECURE Act eliminated stretch IRAs for most non-spouse beneficiaries, requiring full distribution within 10 years (no annual RMDs if owner died before RMD age).

Exceptions: surviving spouses (can treat as own IRA), minor children (until majority), disabled/chronically ill beneficiaries, and beneficiaries less than 10 years younger than deceased.

Spouse beneficiaries can delay RMDs until deceased would have turned 73, use Single Life Table (more favorable), or treat as their own IRA.

Non-spouse beneficiaries who inherited pre-2020 can still use stretch IRA rules based on their life expectancy.