401kRequired Minimum Distributions (RMDs)
The IRS eventually requires you to start withdrawing from a traditional 401(k), whether you need the money or not. Here's the current starting age and how the penalty for missing one works.
Reviewed January 2026 against current IRS guidance.
What an RMD is
A required minimum distribution is the minimum amount you must withdraw each year from a traditional 401(k) once you reach a certain age. The rule exists because traditional 401(k) contributions were never taxed going in — the government eventually wants its share, and RMDs force the account to be drawn down and taxed over your remaining lifetime rather than indefinitely.
The RMD amount is calculated by dividing your prior year-end account balance by a life-expectancy factor published in IRS tables. Your plan administrator or IRA custodian typically calculates this for you.
The current starting age
The SECURE 2.0 Act raised the RMD starting age to 73 (for those turning 72 after 2022), and it is scheduled to rise again to 75 starting in 2033. Always confirm the current age based on your specific birth year, since the rule phases in gradually.
| If you were born | Your RMDs generally start at age |
|---|---|
| Before July 1, 1949 | 70½ |
| July 1, 1949 – 1950 | 72 |
| 1951 – 1959 | 73 |
| 1960 or later | 75 |
Still working? The “still-working exception”
If you're still employed by the company sponsoring the plan (and you don't own more than 5% of the company), many 401(k) plans allow you to delay RMDs from that specific employer's plan until after you actually retire, even past the standard RMD age. This exception does not apply to IRAs, and it doesn't apply automatically — the plan has to permit it, and it doesn't extend to 401(k) accounts from previous employers.
The penalty for missing an RMD
If you fail to take a full RMD by the deadline, the shortfall is subject to an excise tax. SECURE 2.0 reduced this penalty from 25% of the amount not withdrawn down to 25%, further reduced to 10% if you correct the mistake within a defined correction window by taking the missed distribution and filing the appropriate form. Before SECURE 2.0, the penalty was a flat 50%. If you miss one, the IRS also allows you to request a full waiver of the penalty for reasonable cause — this is worth pursuing with a tax professional rather than assuming the penalty is unavoidable.
Your first RMD has a special deadline
For the very first year you're required to take an RMD, you're allowed to delay that first withdrawal until April 1 of the following year. Every subsequent RMD, including the second one, must be taken by December 31 of that year. Delaying the first RMD means you could end up taking two taxable distributions in the same calendar year — which can push you into a higher tax bracket — so this is a timing decision worth planning around rather than defaulting into.
Roth 401(k)s are no longer subject to lifetime RMDs
Starting in 2024, SECURE 2.0 eliminated the RMD requirement for Roth 401(k) balances during the original owner's lifetime, matching how Roth IRAs have always worked. Traditional 401(k) balances are unaffected by this change and remain subject to RMDs.