Have you checked out Vanguard's required minimum distribution (RMD) service? It's free! Andget answers to your most frequently asked RMD questions here.
Taking your required minimum distribution (RMD)
If you'll soon need to take an RMD from your IRA or small business retirement accountand you have questionsyou've come to the right place!
This video and the resources available on this pageprovide answers to the most common RMD questions that we receive at Vanguard.
I'll be specifically talking about traditional IRAs and small-business retirement accountssuch as SEP-IRAsSIMPLE IRAsand i401(k) accounts.
If you need information about an employer retirement planuse the link to RMD rules for employer retirement planswhich you can find under Related Items.
Roth IRAs are exempt from RMDs. For more information about inherited IRAsselect the link to RMD rules for inherited IRAsin the Related Items.
Sojust when are you required to take your RMD?
In most casesyou'll need to take your first RMD by April 1stof the year following the year you reach age 73.
Once you have your first RMD under your beltthe annual deadline will be the last day of each calendar year.
But rememberif you miss these deadlinesyou may have to pay a tax penalty.
If you'd just as soon not have to deal with the logistics of taking an RMD every yearour free RMD service might be exactly what you're looking for.
Once you've signed up for the serviceVanguard will distribute your RMD on timeyear after yearaccording to the instructions you provide when you enroll.
You can read more about the service and enrollusing the Sign up for RMD service link.
Important information
All investing is subject to riskincluding the possible loss of the money you invest.
You may wish to consult a tax advisor about your situation.
Confused about RMDs? We can help!
Traditional IRAs and employer plans like a 401(k) allow you to put off paying federal taxesoften for decades. Generallyyour required minimum distribution (RMD) for a given year must be withdrawn by December 31 of that yeareither in a lump sum or in installments. Howeverif you're taking an RMD for the first timeyou may delay withdrawing the RMD until April 1 of the year after the year you turn age 73* (orin some casesuntil after the year you retire).
*Due to changes to federal law that took effect on January 12023the age at which you must begin taking RMDs differs depending on when you were born. If you reached age 72 on or before December 312022you were already required to take your RMD and must continue satisfying that requirement. Howeverif you had not yet reached age 72 by December 312022you must take your first RMD from your traditional IRA by April 1 of the year after you reached age 73.
If you feel unsure about how to navigate RMDsanswer some basic questions and we'll walk you through what to do.
RMD look a little different? Here’s why.
If this isn't your first year taking a required minimum distribution (RMD)you may have noticed it's a bit smaller than last year. That's because the IRS released new life expectancy tables for 2022which impacted your RMD calculation. A lower RMD means you may have a larger account balance for future years and your 2022 taxable income will most likely be reduced.