RMD Start Dates Based on Birth Year
The most important factor for determining your RMD starting age is your year of birth, due to the SECURE and SECURE 2.0 Acts. The old rule requiring RMDs at age 70½ was changed to 72 by the SECURE Act of 2019. The more recent SECURE 2.0 Act further increased the starting age to 73 and then to 75, depending on when you were born.
Here is a breakdown of the required beginning date based on birth year:
- Born on or before June 30, 1949: RMDs began at age 70½.
- Born between July 1, 1949, and December 31, 1950: RMDs began at age 72, as per the original SECURE Act.
- Born between January 1, 1951, and December 31, 1959: Your RMD age is 73. This change is due to the SECURE 2.0 Act, which became effective in 2023.
- Born on or after January 1, 1960: Your RMD age is 75, effective beginning in 2033.
This means that if you turned 72 in 2023 or later, your first RMD is due in the year you turn 73.
First-Year RMD Timing
Your first RMD can be taken by December 31 of the year you reach the required age, or you can delay it until April 1 of the following year. For example, if you reach age 73 in 2025, you can take your first RMD by December 31, 2025, or wait until April 1, 2026. However, delaying your first distribution has tax implications because you will need to take two RMDs in the same year—your first by April 1 and your second by December 31. This could push you into a higher tax bracket. Subsequent RMDs must be taken by December 31 of each year.
Important Considerations for RMD Calculations
Account Types and Exceptions
Not all retirement accounts are subject to RMD rules during the owner's lifetime. Understanding the distinctions is key to managing your withdrawals effectively.
- Traditional IRA, SEP IRA, and SIMPLE IRA: These accounts require RMDs once you reach the specified age, regardless of employment status.
- 401(k), 403(b), and 457(b) Plans: If you are still working for the company that sponsors your plan, you can delay RMDs for that specific account until retirement, unless you are a 5% owner. However, this delay does not apply to any IRAs you may have.
- Roth IRAs: These accounts are exempt from RMDs for the original owner's lifetime. The SECURE 2.0 Act also eliminated RMDs for Roth accounts within employer plans, effective 2024.
Calculation Method
To calculate your RMD, you use your account balance as of December 31 of the prior year and divide it by a life expectancy factor from the appropriate IRS table. The IRS provides several tables, so it is important to use the correct one for your situation.
Comparison of RMD Starting Ages
To clarify the changes over time, the following table summarizes the different RMD starting ages based on the individual's birth year and relevant legislation. This highlights why your birthdate is the single most important factor.
| Individual's Birthdate | Relevant Legislation | RMD Start Age | First RMD Year |
|---|---|---|---|
| On or before June 30, 1949 | Pre-SECURE Act | 70½ | Year turning 70½ |
| July 1, 1949–December 31, 1950 | SECURE Act | 72 | Year turning 72 |
| January 1, 1951–December 31, 1959 | SECURE 2.0 Act | 73 | Year turning 73 |
| On or after January 1, 1960 | SECURE 2.0 Act | 75 | Year turning 75 |
Conclusion
Determining your RMD starting age is a straightforward process guided by your birth year and recent federal legislation. For most retirees who have not yet started their RMDs, the starting age is now 73 or 75, depending on when they were born. By using your birthdate to pinpoint your correct starting age, consulting the appropriate IRS life expectancy table, and understanding any exceptions for specific account types, you can ensure timely withdrawals and avoid significant tax penalties. For complex situations or confirmation of your specific dates, consulting with a qualified tax advisor is always a prudent step. Learn more about RMD calculation steps from the IRS.
