One Key Rule for Understanding 2023 RMDs
Required minimum distribution (RMD) rules can be confusing, but there is an essential guideline that can help.
Recent retirement savings legislation (e.g., the SECURE 2.0 Act) has created confusion about when people must begin taking required minimum distributions (RMDs) from tax-deferred retirement savings accounts. (RMDs are the minimum amounts you must withdraw from certain retirement accounts each year once you reach a certain age.)
New RMD rules
For example, a few years ago, the SECURE Act raised the age for taking RMDs from 70.5 to 72. But when the SECURE 2.0 Act became law, the RMD age moved to 73. That raised questions for many about when their first RMDs were due.
Confusing things even more, the IRS delayed rules for some inherited IRA RMDs. The agency also waived penalties for failing to take certain RMDs. So, for 2023, some retirees wonder whether and when they must take required minimum distributions.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
RMD age by birth year
Thankfully, to simplify things, there is a relatively straightforward guideline for some 2023 RMDs. That’s because the age at which you must start taking required minimum distributions is determined by your birth year.
- Essentially, if you were born in 1950 or earlier, you must take required minimum distributions in 2023.
- However, if you were born on or after January 1, 1951, you are not obligated to take RMDs in 2023.
Note: Accounts subject to RMD rules include employer-sponsored retirement plans including, including profit-sharing plans, 401(k) plans, 403(b) plans, and 457(b) plans. Other tax-deferred retirement accounts, such as traditional IRAs, SEPs, and SIMPLE IRAs, are also subject to RMDs.
Do Roth IRAs have RMDs? But remember that inherited IRAs have their own set of complicated rules. Meanwhile, Roth IRA accounts are not subject to RMD requirements until after the account owner dies. And beginning in 2024, RMDs won’t be required for designated Roth 401(k) accounts. (However, 2023 RMDs due by April 1, 2024, are still required.)
When do RMDs start?
- If you reach age 72 in 2023, your first RMD can be delayed until age 73. So, the first RMD (for 2024) is due April 1, 2025.
- If you were age 72 in 2022, the prior RMD rule applies. That means your first RMD was due April 1, 2023, and your second RMD was due Dec. 31, 2023. (The RMD amount would be based on your account balance on Dec. 31 of last year, 2022).
It's important to note that your first RMD can wait until the 1st of April, the following year. That might give you time to align the distribution with your financial situation, but it can result in two RMDs in a year.
However, remember that subsequent RMDs must be completed by December 31 of a given year.
How are RMDs taxed?
Required minimum distributions are generally taxed as ordinary income in the year they are taken. So, RMDs can increase your taxable income and potentially push you into a higher federal income tax bracket.
Additionally, increased income from required distributions can affect your eligibility for some tax credits and deductions and impact the amount you pay in Medicare Part B and D premiums.
What can you do? Given the potential impacts of RMD income and recent legislative changes in SECURE 2.0, it's essential to stay informed and seek advice from financial experts to ensure compliance with the latest regulations. Also keep in mind that failing to take RMDs can result in IRS penalties.
Consult your financial advisor or a tax professional to plan your retirement account distributions and make informed decisions on withdrawals that optimize your financial situation in retirement while minimizing tax implications.
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Kelley R. Taylor is the senior tax editor at Kiplinger.com, where she breaks down federal and state tax rules and news to help readers navigate their finances with confidence. A corporate attorney and business journalist with more than 20 years of experience, Kelley has covered issues ranging from partnerships, carried interest, compensation and benefits, and tax‑exempt organizations to RMDs, capital gains taxes, and income tax brackets. Her award‑winning work has been featured in numerous national and specialty publications.
-
3 Ways to Stretch the 2026 Social Security COLA For Your BudgetThree steps retirees can take to stretch the Social Security COLA to fit their budgets.
-
How to Keep Your Charitable Giving Momentum Going All YearInstead of treating charity like a year-end rush for tax breaks, consider using smart tools like DAFs and recurring grants for maximum impact all the year.
-
Uber Takes Aim at the Bottom Lines of Billboard LawyersUber has filed lawsuits and proposed a ballot initiative, in California, to curb settlements it claims are falsely inflated by some personal injury lawyers.
-
How Are I Bonds Taxed? 8 Common Situations to KnowBonds Series I U.S. savings bonds are a popular investment, but the federal income tax consequences are anything but straightforward.
-
Capital Gains Tax Quiz: How Well Do You Really Know IRS Investment Tax Rules?Quiz Take our capital gains tax quiz to test your investment taxes knowledge. Learn about loss rules, holding periods, and tax incentives that could impact your savings.
-
6 Tax Reasons to Convert Your IRA to a Roth (and When You Shouldn't)Retirement Taxes Here’s how converting your traditional retirement account to a Roth IRA can boost your nest egg — but avoid these costly scenarios.
-
Could Tax Savings Make a 50-Year Mortgage Worth It?Buying a Home The 50-year mortgage proposal by Trump aims to address the housing affordability crisis with lower monthly mortgage payments. But what does that mean for your taxes?
-
3 Ways High-Income Earners Can Maximize Their Charitable Donations in 2025Tax Deductions New charitable giving tax rules will soon lower your deduction for donations to charity — here’s what you should do now.
-
An HSA Sounds Great for Taxes: Here’s Why It Might Not Be Right for YouHealth Savings Even with the promise of ‘triple tax benefits,’ a health savings account might not be the best health plan option for everyone.
-
New RMD Rules: Can You Pass This Retirement Distributions Tax Quiz?Quiz Take our RMD quiz to test your retirement tax knowledge. Learn about RMD rules, IRS deadlines, and tax penalties that could shrink your savings.
-
10 Retirement Tax Plan Moves to Make Before December 31Retirement Taxes Proactively reviewing your health coverage, RMDs and IRAs can lower retirement taxes in 2025 and 2026. Here’s how.