A required minimum distribution (RMD) is the minimum amount the IRS requires certain retirement account owners and beneficiaries to withdraw each year. Under the SECURE 2.0 Act, most IRA owners must begin taking RMDs at age 73.
RMD rules apply to the following account types, whether they are self-directed or not:
- Traditional IRAs
- SEP IRAs
- SIMPLE IRAs
- Inherited IRAs
- Inherited Roth IRAs
RMDs do not apply to Roth IRAs while the original owner is alive. However, beneficiaries who inherit a Roth IRA may be subject to RMD requirements.
Legislative RMD Age Changes
The age at which IRA owners must begin taking RMDs has changed over time as a result of federal legislation. The chart below provides a historical overview of these changes.
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Resources:
As a directed custodian, STRATA Trust Company does not provide tax, legal, or investment advice. Because RMD requirements can vary based on your individual circumstances, STRATA recommends consulting a qualified tax professional for guidance specific to your situation. For more information on RMDs, visit IRS.gov.