Required Minimum Distributions in Plain English

Required Minimum Distributions, usually called RMDs, are one of those retirement topics that sound more complicated than they really are. The basic idea is simple: if you saved money in a tax-deferred retirement account, the IRS eventually requires you to start taking money out so income taxes can be collected.

This series is written for solo agers who are not currently married. That makes the core explanation simpler because many readers in this situation will use the IRS Uniform Lifetime Table for their own IRA withdrawals.

The most important practical recommendation in this series is this:

Take your first RMD during the calendar year you turn age 73. Do not wait until the following April 1 unless a qualified tax adviser has reviewed your situation and told you there is a good reason to wait.

The IRS allows many people to delay the first RMD until April 1 of the year after they turn 73. But if they do, they generally must take a second RMD by December 31 of that same year. The IRS itself notes that taking the first withdrawal by December 31 of the year you turn 73 allows the two distributions to be included in separate tax years. 

For solo agers, simplicity is protection. One RMD per year is easier to understand, easier to remember, easier to plan for, and less likely to create a tax surprise.

This series has four parts:

Part 1: What Is an RMD, and Why Does the IRS Make You Take It?
Part 2: Why You Should Take Your First RMD in the Year You Turn 73
Part 3: How Is My RMD Calculated?
Part 4: Smart RMD Moves for Solo Agers 

The One-Sentence Answer

An RMD is the minimum amount the IRS requires you to withdraw each year from certain retirement accounts once you reach the required age.

Many retirees think of their IRA or 401(k) as their money, and of course it is. But if that money was saved on a tax-deferred basis, the IRS has been waiting for its share. RMDs are the system the government uses to make sure tax-deferred retirement accounts do not remain untouched forever. For solo agers, understanding RMDs is especially important because there may not be a spouse watching the calendar, organizing paperwork, or catching a missed deadline.

During your working years, you may have put money into a traditional IRA, 401(k), 403(b), SEP IRA, SIMPLE IRA, or similar retirement account. In many cases, you received a tax benefit when you contributed the money. You did not pay current income tax on those dollars. The account then grew tax-deferred.

That tax break came with a condition: eventually, you must take money out.

That is where RMDs come in.

RMD stands for Required Minimum Distribution. It is not the maximum you can withdraw. It is the minimum amount you must withdraw for the year. You can always take more if you need the money, but you generally cannot take less without risking a penalty.

The IRS says RMDs generally apply to traditional IRAs and many workplace retirement plans. Roth IRAs do not require lifetime RMDs for the original owner, although inherited Roth accounts have their own rules. 

The important point is this: RMDs are not optional. They are part of the retirement tax system.

For most solo agers, the first RMD year is the year you turn age 73. The law may allow you to delay that first withdrawal until April 1 of the following year, but this series recommends a simpler rule:

Take the first RMD during the same calendar year you turn 73.

Why? Because waiting can force you to take two RMDs in the following year. That means two taxable withdrawals in one tax year. This may increase your taxable income, affect Medicare premiums, increase the taxation of Social Security, or create a larger tax bill than expected.

Here is the simpler way to think about it:

• Turn 73 this year.
• Take your first RMD this year.
• Then take one RMD each year after that by December 31.

This creates a cleaner pattern: one year, one RMD.

For solo agers, that clarity matters. A confusing system is more likely to break down during illness, grief, travel, disorganization, or cognitive decline.

A Simple Example

Imagine you turn 73 in 2026.

The IRS may allow you to delay your first RMD until April 1, 2027. But if you wait, you will likely also have to take your 2027 RMD by December 31, 2027.

That means two taxable RMDs in 2027.

A simpler approach is to take your first RMD in 2026, the year you turn 73. Then take your next RMD in 2027. That keeps the income spread across two separate tax years.

What Solo Agers Should Do

Solo agers should treat RMDs as an annual financial chore, like filing a tax return or reviewing insurance. Do not rely on memory. Put the RMD deadline on your calendar. Ask your IRA custodian whether it calculates the RMD for you. If you have several accounts, make a simple list.

The danger for solo agers is not intelligence. The danger is paperwork drift. An account gets forgotten. A statement gets ignored. A December deadline arrives during illness or distraction. That is how mistakes happen.

With Children

If you have adult children, do not assume they understand RMDs. Many do not. If you want them to help later, show them where the accounts are, who the custodian is, and when withdrawals are usually taken.

Without Children

If you do not have children, identify another helper before you need one. This could be a trusted friend, CPA, fiduciary, or professional daily money manager. Your goal is not to surrender control. Your goal is to create a backup system.

Three Mistakes to Avoid

1. Thinking RMDs are optional.
2. Waiting until the year after you turn 73 and accidentally creating two taxable RMDs in one year.
3. Forgetting about an old retirement account.

Action Step

Create an RMD folder, either paper or digital. Include the names of your retirement accounts, custodian contact information, year-end balances, beneficiary forms, and a note saying: “I intend to take my first RMD during the calendar year I turn 73.”

• List every traditional IRA, SEP IRA, SIMPLE IRA, 401(k), 403(b), and similar account.
• Mark which accounts may be subject to RMDs.
• Identify the calendar year you turn age 73.
• Plan to take your first RMD during that calendar year.
• Ask each custodian whether it provides an annual RMD calculation.
• Put the RMD deadline on your calendar.
• Save every RMD confirmation.
• Tell a trusted helper where the information is kept.

The One-Sentence Answer

Although the IRS may allow you to delay your first RMD until April 1 of the following year, many solo agers should take it during the calendar year they turn 73 to avoid two taxable RMDs in one year.

The first RMD deadline is one of the most confusing parts of the entire RMD system. The rule gives you flexibility, but that flexibility can backfire. If you delay the first RMD until the following year, you may have to take two RMDs in that same year. For solo agers, this creates more paperwork, more tax complexity, and more room for mistakes. The simpler and often safer habit is to take your first RMD during the calendar year you turn 73.

The official rule can be confusing because it contains two ideas at once.

First, your first RMD is for the year you turn age 73.

Second, the IRS may allow you to delay that first RMD until April 1 of the following year.

That delay sounds attractive. Who would not want to postpone taxable income?

But there is a catch. If you delay your first RMD until the year after you turn 73, you generally still must take your second RMD by December 31 of that same year. The IRS explains that if you reach age 73 in 2024, your first RMD is due by April 1, 2025, and your second RMD is due by December 31, 2025. 

That means two taxable withdrawals in one calendar year.

For some retirees, this may be acceptable. For others, it may be costly or confusing.

Two RMDs in one year can increase taxable income. That can affect your tax bracket. It may increase how much of your Social Security is taxable. It may affect Medicare premium surcharges. It may also create a larger estimated tax issue.

Even when the tax cost is manageable, the complexity is not helpful for many solo agers.

This site’s practical recommendation is therefore simple:

Take your first RMD during the calendar year you turn age 73.

Do not wait until the following April 1 unless you have a clear, reviewed reason.

This advice is not because the April 1 deadline is wrong. It is because it is often not the cleanest choice for ordinary retirees who want fewer moving parts.

A good solo-ager system values clarity. One RMD each year is easier to track than two RMDs in one year. One tax year, one required withdrawal. That is the pattern you want.

A Simple Example

Suppose you turn 73 in July 2026.

You have two choices.

Choice 1: Take your first RMD by December 31, 2026.

Then your next RMD is due by December 31, 2027.

This means one RMD in 2026 and one RMD in 2027.

Choice 2: Delay your first RMD until April 1, 2027.

Then your second RMD is still due by December 31, 2027.

This means two RMDs in 2027.

For many retirees, Choice 1 is easier to understand and easier to manage.

What Solo Agers Should Do

In the year you turn 73, contact your IRA custodian early. Do not wait until December. Ask for your RMD amount. Ask how long the withdrawal takes. Ask whether taxes can be withheld. Ask whether you can schedule the withdrawal automatically.

A good target is to take your first RMD by October or November of the year you turn 73. That leaves time to fix problems before year-end.

With Children

If you have adult children, tell them your rule: “I take my RMD every year, including the year I turn 73.” This is clearer than explaining the April 1 exception.

Without Children

If you do not have children, clarity matters even more. Put a written note in your financial file: “Do not delay first RMD unless reviewed by tax adviser.”

Three Mistakes to Avoid

1. Thinking the April 1 delay means there is no RMD for the year you turn 73.
2. Forgetting that a delayed first RMD can cause two withdrawals in the following year.
3. Waiting until late December to start the process.

Action Step

In January of the year you turn 73, write this on your calendar: “First RMD year. Contact custodian by September. Complete RMD before December 31.”

• Identify the year you turn age 73.
• Treat that year as your first RMD year.
• Ask your custodian for the RMD amount early.
• Plan to complete the first withdrawal before December 31 of that year.
• Avoid the April 1 delay unless you have tax advice.
• Keep proof of the withdrawal.
• Tell your trusted helper your RMD schedule.
• Repeat the process every year after that.

The One-Sentence Answer

Your RMD is generally calculated by dividing your prior year-end retirement account balance by an IRS life expectancy factor.

Many people are intimidated by the RMD calculation because it sounds actuarial, mathematical, and official. But for most unmarried solo agers calculating their own IRA RMD, the basic formula is straightforward. You take the account balance from December 31 of the prior year and divide it by the IRS factor for your age. The custodian may do this for you, but you should still understand the logic because you are ultimately responsible for taking the correct amount.

The basic RMD formula is:

Prior December 31 account balance divided by IRS life expectancy factor equals RMD.

For many solo agers who are not currently married, the IRS Uniform Lifetime Table is generally the table used for lifetime RMDs from their own IRA.

The older you get, the smaller the life expectancy factor becomes. That means the percentage you must withdraw usually rises as you age.

This does not mean you are expected to spend your account down to zero immediately. It simply means the IRS requires larger minimum withdrawals as you get older.

Here is the key point for the first RMD:

Even if you take your first RMD during the year you turn 73, the calculation still uses the account balance from the previous December 31.

So if you turn 73 in 2026, your first RMD is based on your account balance as of December 31, 2025.

This is another reason to contact your custodian early in the year you turn 73. The custodian usually has the prior year-end value and can often provide the RMD amount.

Do not guess. Do not estimate loosely. Get the number.

A Simple Example

Suppose you turn 73 in 2026.

Your traditional IRA balance on December 31, 2025 was $300,000.

Assume the IRS factor for age 73 is 26.5.

Your RMD would be:

$300,000 divided by 26.5 equals $11,320.75.

That means you must withdraw at least $11,320.75 during 2026.

You may withdraw more. But if this is your only IRA and the calculation is correct, you should not withdraw less.

Multiple IRAs

If you have more than one traditional IRA, each IRA has its own RMD calculation. However, in many cases, you may add up the total RMDs for your traditional IRAs and take the combined amount from one IRA.

But be careful: workplace plans, such as 401(k)s and 403(b)s, may have different rules. Do not assume every account can be combined freely. Ask the plan administrator or tax adviser.

Taxes

RMDs from traditional retirement accounts are generally taxable as ordinary income. That means they are not taxed at special capital gains rates. They are included in your taxable income.

That is why taking the first RMD in the year you turn 73 can help simplify tax planning. Instead of two RMDs in one year, you create a steadier income pattern.

What Solo Agers Should Do

Create a simple annual RMD worksheet. It should include:

• Account name
• Account number, or last four digits
• December 31 balance
• IRS factor
• RMD amount
• Date withdrawn
• Tax withheld
• Confirmation number

You do not need to become a tax expert. But you do need a record.

With Children

If adult children help you, give them the worksheet format. This is better than handing them a pile of statements.

Without Children

If you do not have children, the worksheet becomes part of your personal protection system. It allows a trusted helper to step in without guessing.

Three Mistakes to Avoid

1. Using the wrong year-end balance.
2. Forgetting an old IRA.
3. Assuming all retirement accounts can be combined for withdrawal purposes.

Action Step

Ask each retirement account custodian for your current year RMD amount in the year you turn 73. Then compare the custodian’s number to your own simple worksheet. If there is a difference, ask why.

• Find the December 31 balance for each account.
• Confirm the correct IRS table.
• Ask the custodian for its RMD calculation.
• Record the withdrawal date.
• Record tax withholding.
• Keep confirmation statements.
• Ask before combining RMDs from different account types.
• Complete the first RMD during the year you turn 73.

The One-Sentence Answer

RMDs are required withdrawals, but you still have planning choices that can reduce stress, avoid penalties, and help you manage taxes.

RMDs are often treated as a nuisance, but they can become part of a smart retirement income system. The question is not only, “How much must I take?” The better question is, “How can I handle this in a way that supports my life?” For solo agers, RMD planning is also a protection issue. A good system can help prevent missed withdrawals, tax surprises, account confusion, and unnecessary reliance on expensive professional help.

Once RMDs begin, you generally must take them every year from covered retirement accounts. You cannot simply decide to skip a year because you do not need the money.

But you still have choices.

You can choose when during the year to take the withdrawal. You can choose whether to take it monthly, quarterly, or annually. You can decide whether to withhold taxes from the distribution. You can coordinate the withdrawal with your spending plan. And if you are charitably inclined, you may be able to use a Qualified Charitable Distribution, often called a QCD, from an IRA.

A QCD allows eligible IRA owners to send money directly from an IRA to a qualified charity. When done correctly, it can count toward the RMD while keeping that amount out of taxable income. This is a powerful planning tool for some retirees, but the rules must be followed carefully.

The first smart move, however, is the simplest:

Take your first RMD during the calendar year you turn 73.

Do not create unnecessary complexity by waiting until the following April 1 unless a tax professional has given you a specific reason to do so.

A good RMD system has five parts:

1. A list of accounts.
2. A yearly calculation.
3. A chosen withdrawal month.
4. A tax withholding decision.
5. A confirmation record.

This is not glamorous, but it is protective.

Watch the Tax Ripple Effects

RMDs are generally taxable income. That income can affect more than your tax bill. It may influence Medicare premium surcharges, taxation of Social Security, estimated tax payments, and overall cash flow.

This is why doubling up RMDs in one year can be a problem. If you delay the first RMD until the year after you turn 73, you may have two taxable RMDs in that later year. The IRS notes that making the first withdrawal by December 31 of the year you turn 73 allows the distributions to fall into separate tax years. 

This is also why some people consider Roth conversions before RMD age. A Roth conversion means voluntarily moving money from a traditional retirement account to a Roth IRA and paying tax now. This may reduce future RMDs, but it is not automatically right for everyone. It requires careful tax analysis.

Do Not Overpay for Help

Some retirees pay high advisory fees simply because they are afraid of RMDs. In many cases, you do not need expensive investment management just to handle RMDs. Your IRA custodian, tax preparer, and a simple checklist may be enough.

But do not confuse cost control with isolation. If you are unsure, pay for targeted advice. A one-hour tax planning session may be much cheaper than paying an ongoing asset management fee on your entire portfolio.

With Children

If you have children, make sure they know the difference between helping and taking over. Give them the RMD file, but keep control as long as you are able.

Without Children

If you do not have children, consider naming a trusted contact on financial accounts where available. Also consider whether you need a durable power of attorney, professional fiduciary, or daily money manager as part of your backup plan.

Three Mistakes to Avoid

1. Treating RMDs as a once-a-year panic event.
2. Paying high ongoing fees for a task that may require only limited help.
3. Failing to plan for illness or cognitive decline.

Action Step

Create a one-page RMD instruction sheet titled: “How My RMDs Are Handled.” Include this sentence: “My plan is to take the first RMD during the calendar year I turn age 73, not to delay it until the following April 1.”

• Choose a regular RMD withdrawal month.
• Use that month even in the year you turn 73.
• Decide whether taxes should be withheld.
• Ask about automatic RMD services.
• Consider QCDs if you give to charity.
• Review Roth conversion possibilities before RMD age.
• Keep beneficiary forms current.
• Add RMD instructions to your emergency financial file.
• Use targeted professional advice instead of unnecessary ongoing fees.