Rochester Hills – November 01, 2026 -- Retirees with traditional IRAs and many employer plans must take annual required minimum distributions (RMDs), and missing one can trigger an IRS penalty, according to Janie Kelly, a retirement planning expert in Rochester Hills, Michigan, writing in HelloNation.
RMDs apply to tax-deferred accounts, not Roth accounts
RMDs ensure tax-deferred savings eventually become subject to income tax. Roth accounts generally do not require lifetime withdrawals by their original owners. Inherited accounts follow separate rules, which may include annual withdrawals and a deadline for emptying the account.
The prior December 31 balance drives the calculation
An RMD generally equals the account's prior December 31 balance divided by an IRS life expectancy factor. Different tables may apply depending on the owner's circumstances. The first withdrawal generally is due April 1 of the year after the applicable starting age, and later ones by December 31. Waiting until April for the first can mean two taxable distributions in one year, which may affect the retiree's tax bracket.
IRAs and 401(k)s follow different rules
Each traditional IRA needs its own calculation, but the combined amount can generally come from one IRA or several. Most 401(k) plans require withdrawals from each individual account. Eligible employees still working under their current employer's plan may be able to delay, but that exception does not apply to IRAs.
Withdrawals can affect other retirement costs
Kelly notes that taxable withdrawals may affect income tax brackets, taxation of Social Security benefits, and Medicare premiums for higher-income retirees. Eligible IRA owners can count qualified charitable distributions toward an RMD if the money goes directly to qualified charities and stays within applicable limits. Retirees do not have to withdraw everything at once: payments can be monthly or quarterly, and some arrange automatic distributions through their account provider.