Question 1

At what age do RMDs start?

Accepted Answer

Under the SECURE 2.0 Act, required minimum distributions from traditional IRAs and 401(k)s begin at age 73 (for those born 1951–1959; it rises to 75 for those born in 1960 or later). Roth IRAs have no RMDs during the owner's lifetime. Your first RMD can be delayed to April 1 of the year after you turn 73, but doing so means taking two distributions that year.

Question 2

How is the RMD amount calculated?

Accepted Answer

Divide your prior-year-end (December 31) account balance by the IRS Uniform Lifetime Table divisor for your age. For example, at age 75 the divisor is 24.6, so a $500,000 balance gives an RMD of about $20,325. The divisor shrinks each year, so the required percentage rises as you age. Missing an RMD carries a steep penalty, so confirm the amount with your custodian or a tax professional.

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