Deadline to withdraw the IRS-required minimum distribution from retirement accounts.
Beginning at age 73 (as of 2023; previously 72), owners of Traditional IRAs, 401(k)s, 403(b)s, and similar retirement accounts must withdraw a minimum amount each calendar year. These Required Minimum Distributions (RMDs) are calculated using IRS life expectancy tables and your account balance.
The IRS requires RMDs to ensure that retirement savings are distributed and taxed during your lifetime, rather than left untouched as tax-deferred growth indefinitely. RMDs are subject to ordinary income tax, which can push you into a higher tax bracket.
The RMD calculation is: December 31 prior-year account balance ÷ IRS life expectancy factor. For example, if your IRA balance is $500,000 and your life expectancy factor is 23.5, your RMD is $500,000 ÷ 23.5 = $21,277.
The deadline is December 31 each year, with one exception: your first RMD can be delayed until April 1 of the year following age 73. However, if you delay your first RMD past December 31, you may want to take two RMDs in the following year (one for the prior year and one for the current year).
Roth IRAs do not have RMDs during the account owner's lifetime, though beneficiaries do. This is one reason Roth accounts are appealing for long-term wealth building.
If you own multiple IRAs, you can aggregate RMDs (take from one account to cover all), but 401(k) and 403(b) RMDs must be taken individually from each employer plan.
Missing the RMD deadline results in:
- Excise tax: 25% of the shortfall amount (reduced to 10% if corrected within 2 months)
- Ordinary income tax: RMDs are taxable as ordinary income when withdrawn
- Potential tax bracket increase from large distributions
- IRS audit risk if missed consistently
Add this deadline to your phone, calendar, or reminder app 2–3 weeks in advance to avoid last-minute stress.