RMDs: When to Take One and How to Calculate It

Required Minimum Distributions (RMDs)

RMDs: When Do I Have to Take One and How Do I Calculate It?

Required minimum distributions are a fact of life for traditional IRAs. The rules are complex and they've recently changed.

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The rules on when retirees must take required minimum distributions (RMDs) changed as of Jan. 1, 2020, thanks to the SECURE Act, which was signed into law on Dec. 20, 2019.

Under the old rules, anyone with money in an IRA was forced to take an RMD every year starting at age 70½. The SECURE Act now delays those required distributions until age 72.

Kiplinger is in the process of updating its retirement tools to reflect this important change in rules, but in the meantime, here are a couple of key points to understand:

  • If you were born on July 1, 1949, or later, you do not have to take an RMD until age 72.
  • If you were born before that, you fall under the old RMD rules, and you’ll be forced to withdraw money (whether you need it or not) every year starting after age 70½.

Our tool will be updated shortly, so please stay tuned. And for more on RMDs and how they changed under the SECURE Act, please see:

10 Ways the SECURE Act Will Impact Your Retirement Savings

5 Things Affluent Retirees Should Do Now that the SECURE Act Has Passed

Pros, Cons and Possible Disasters after SECURE Act