Fairvoy Private Wealth | Retirement Planning

IRA Required Minimum Distributions (RMDs)

Q: If I wait until April 1 for my first RMD, do I still have to take another one that year?

Yes—if you delay your first RMD until April 1 of the following year, you’ll generally still need to take your second RMD by December 31 of that same year. That can mean two taxable distributions in one year , which may increase taxes and Medicare premiums.

Q: Do RMDs apply to Roth IRAs?

Generally, no —Roth IRAs do not have lifetime RMDs for the original owner. However, inherited Roth IRAs usually have distribution requirements for beneficiaries.

RMDs are the IRS-required withdrawals from certain retirement accounts once you reach a specific age. The rules can feel technical—but the goal is straightforward: ensure tax-deferred retirement dollars eventually become taxable income.

Ask a question See the calculation Learn about QCDs

Fairvoy tip: If you delay your first RMD until April 1 of the following year, you may have to take two RMDs in the same calendar year— which can raise taxes and Medicare premium brackets.

Quick start

Jump to the sections people ask about most.

When RMDs begin Dates How RMDs are calculated Formula QCDs and tax planning Charity Contact Fairvoy Message

RMDs in plain English

Most retirement accounts let you delay taxes while money grows. RMDs are the IRS rule that eventually requires you to take at least a minimum amount out each year. That withdrawal is generally taxable income.

Rule of thumb

One calendar year at a time

RMDs are generally based on your prior year-end balance (Dec. 31) and your age in the current year.

Deadline

Usually by December 31

The annual deadline is typically Dec. 31. Your first RMD has a special “April 1” option (with tradeoffs).

Keep it simple

It’s a minimum, not a maximum

You can always withdraw more than the RMD—but doing so can increase taxes.

Roth IRA note: RMDs generally do not apply to Roth IRAs while the original owner is living. (Inherited Roth accounts have their own rules.)

When do RMDs begin?

Under current rules, most people must begin RMDs based on their “RMD applicable age.” For many retirees today, that starting age is 73. The SECURE Acts changed these ages over time.

Typical rule for IRAs: Your first IRA RMD is for the year you reach the applicable age, but you can delay that first withdrawal until April 1 of the following year. After that, RMDs are generally due by December 31 each year.

Workplace plan exception: Many employer plans allow you to delay RMDs until retirement (if you’re still working), depending on plan rules. This can differ from IRAs.

If you were born…	RMD applicable age (general rule)	Practical takeaway
1950–1959	73	Your first RMD year is the year you turn 73; first deadline can be April 1 of the next year.
1960 or later	75 (scheduled to apply beginning in 2033)	For many younger clients, the first RMD year will be the year you turn 75 (based on current law).

Important: RMD rules can vary for inherited accounts, certain plan features, and special situations. If you’re unsure, we recommend confirming details before year-end.

Which accounts require an RMD?

A simple way to think about it: RMDs usually apply to accounts that received a tax benefit up front (tax-deductible contributions or tax-deferred growth).

Account type	RMDs while owner is living?	Notes
Traditional IRA (including SEP & SIMPLE)	Yes	RMDs begin at the applicable age.
Rollover IRA	Yes	Same rules as a Traditional IRA.
401(k) / 403(b) / 457(b) (most pre-tax plans)	Yes	Some plans allow delaying RMDs until retirement; rules can vary by plan.
Roth IRA	No (generally)	No lifetime RMDs for the original owner; inherited rules differ.
Roth 401(k)	Depends	Recent law changes eliminated lifetime RMDs for many Roth workplace plans; confirm plan details.
Inherited retirement accounts	It depends	Beneficiary rules can be very different (10-year rule, life expectancy, eligible designated beneficiaries, etc.).

One more planning point: If you have multiple Traditional IRAs, the IRS allows you to calculate each IRA’s RMD and then take the total from one or more IRAs. Workplace plans usually must be handled plan-by-plan. Learn more about inherited retirement accounts and RMDs here.

How are RMDs calculated each year?

The standard calculation is straightforward:

RMD formula:

Prior year-end account balance (Dec. 31) ÷ Life expectancy “distribution period” factor (IRS table) = Required minimum distribution

Simple example

If your IRA balance on Dec. 31 was $500,000 and your IRS factor is 26.5, then:

$500,000 ÷ 26.5 = $18,868 (approx.)

Most custodians can calculate and distribute RMDs for you. Planning is about deciding when and how to take it.

Quick visual: the factor gets smaller with age

This is why RMDs typically become a larger % of the account over time.

Age 73

26.5

Age 80

20.2

Age 90

12.2

Age 100

6.4

(Values shown are from the IRS Uniform Lifetime Table factors commonly used for many IRA owners.)

The primary IRS table used for many IRA owners

Many account owners use the Uniform Lifetime Table (often called “Table III”). Special tables can apply if your spouse is more than 10 years younger and the sole beneficiary, or for certain beneficiaries.

Best practice: For the official, always-current IRS tables and examples, use IRS Publication 590‑B.. We also include a quick reference table below for convenience.

Age	Distribution Period	Age	Distribution Period	Age	Distribution Period
72	27.4	88	13.7	104	4.9
73	26.5	89	12.9	105	4.6
74	25.5	90	12.2	106	4.3
75	24.6	91	11.5	107	4.1
76	23.7	92	10.8	108	3.9
77	22.9	93	10.1	109	3.7
78	22.0	94	9.5	110	3.5
79	21.1	95	8.9	111	3.4
80	20.2	96	8.4	112	3.3
81	19.4	97	7.8	113	3.1
82	18.5	98	7.3	114	3.0
83	17.7	99	6.8	115	2.9
84	16.8	100	6.4	116	2.8
85	16.0	101	6.0	117	2.7
86	15.2	102	5.6	118	2.5
87	14.4	103	5.2	119	2.3
88	13.7	104	4.9	120	2.0

Note: This is a quick reference excerpt. For the full official tables (including special spouse/beneficiary tables) and the most current guidance, see IRS Publication 590‑B.

How RMDs can impact taxes

RMDs are usually taxed as ordinary income. That can create a “stacking” effect—your RMD sits on top of other income sources (Social Security, pension, wages, interest/dividends, capital gains), which can increase your overall tax bill.

Income tax brackets

Higher taxable income

RMDs can push part of your income into a higher marginal bracket.

Social Security taxation

More benefits taxed

Higher “combined income” can make a larger portion of Social Security taxable.

Medicare premiums

IRMAA exposure

Large RMDs can increase modified AGI, potentially increasing Medicare Part B & D premiums.

Planning mindset: The question is rarely “Can we avoid RMDs?”—it’s usually “How do we take RMDs in a way that keeps the overall plan efficient?” That might include intentional withholding, spreading distributions throughout the year, charitable strategies, or Roth conversion planning when appropriate.

Common withholding approach

Many retirees use federal and/or state withholding on IRA distributions to help avoid underpayment surprises. You can also make estimated payments; the best method depends on your situation.

Tax note: Fairvoy can help you coordinate planning assumptions and distribution logistics, but tax advice should be confirmed with your CPA.

QCDs: A powerful way to reduce taxable RMD income

A Qualified Charitable Distribution (QCD) allows IRA owners who are age 70½ or older to send IRA dollars directly to a qualified charity. When done correctly, a QCD can count toward your RMD and is generally not included in taxable income.

Why people like QCDs

Can reduce adjusted gross income (AGI) compared to taking the RMD first and then giving cash.
May help with Medicare premium thresholds and Social Security taxation.
Works whether you itemize deductions or take the standard deduction.

Key rules to get right

The distribution must go directly from the IRA to the charity (not to you first).
Only certain charities qualify (and you can’t receive a benefit in return).
QCDs are generally for IRAs (workplace plans typically require a rollover to an IRA first).

QCD item	General rule
Eligibility age	Age 70½ or older at the time of the distribution.
2026 annual limit	Up to $111,000 per person (indexed for inflation).
RMD interaction	A properly completed QCD can count toward your RMD for the year.
Tax reporting	Reported on Form 1099-R; the exclusion is typically reflected on Form 1040 with proper notation. Confirm with your tax preparer.

Practical note: If you plan to use QCDs, it’s often best to complete them earlier in the year to avoid a year-end rush. We’re happy to help coordinate the paperwork and timing.

Planning ideas retirees often ask about

These are common topics a retirement-focused advisor will typically review as part of an overall distribution plan:

Timing

Monthly vs. annual distributions

Some people prefer monthly “paychecks.” Others take RMDs late in the year. The right choice depends on cash flow and tax planning.

Withholding

Pay taxes as you go

Withholding from an IRA distribution can simplify tax planning and may help avoid underpayment penalties.

Roth planning

Roth conversions (when appropriate)

In some cases, proactive Roth conversions before RMD years can reduce future required distributions. This should be coordinated with your CPA.

Common pitfall: Missing an RMD deadline can trigger IRS penalties. If you think you missed an RMD, address it promptly—often there are steps to correct and request relief.

RMD FAQs (one opens at a time)

These are the questions we hear most from retirees and families.

If I wait until April 1 for my first RMD, do I still have to take another one that year?

Yes—if you delay your first RMD until April 1 of the following year, you’ll generally still need to take your second RMD by December 31 of that same year. That can mean two taxable distributions in one year, which may increase taxes and Medicare premiums.

Can I take my RMD from my IRA investments “in kind” instead of selling?

Often, yes. Many custodians can distribute shares (or transfer positions to a taxable account) to satisfy an RMD. The value distributed is typically taxable even if shares are transferred instead of sold. This can be useful when you want to keep a position long-term.

If I have multiple IRAs, do I have to take an RMD from each one?

You generally calculate an RMD for each IRA, but you can often take the total amount from one or more IRAs. Workplace plans (like 401(k)s) are typically handled separately by plan.

Do RMDs apply to Roth IRAs?

Generally, no—Roth IRAs do not have lifetime RMDs for the original owner. However, inherited Roth IRAs usually have distribution requirements for beneficiaries.

Does a QCD satisfy my RMD?

If completed properly, a QCD can count toward your RMD for the year and is generally excluded from taxable income. The key is that the funds must go directly from the IRA to an eligible charity and the tax reporting must be handled correctly.

What happens if I miss an RMD?

The IRS can assess a penalty for missed RMDs. If this happens, it’s best to address it quickly. In many cases, there are steps to correct the shortfall and request relief based on reasonable cause. We recommend coordinating promptly with your tax professional.

If I’m still working, can I delay RMDs from my employer plan?

Some plans allow RMDs to be delayed until retirement (depending on plan rules and ownership status). This differs from IRAs, which generally begin at the applicable age regardless of employment.

Official sources & references:

Have a question about your RMD plan?

If you’d like help coordinating RMD timing, withholding, QCDs, or cash flow planning, we’re happy to talk through the options.

Send us a message Back to calculation

General disclaimer: This page is provided for informational and educational purposes only. While we believe the information is based on sources we consider reliable, it is not guaranteed for accuracy or completeness and may change without notice. This content is not legal, tax, or accounting advice. Please consult your attorney and/or CPA regarding your specific situation. Investing involves risk, including the potential loss of principal.

Required Minimum Distributions

Understanding IRA RMD Rules