The Internal Revenue Service (IRS) reminds taxpayers who turned 73 in 2025 that they should take a required minimum distribution (RMD) by December 31. While taxpayers who are 73 may delay their first RMD until April 1, 2026, they must also take a second RMD by December 31, 2026.

RMDs are generally required for most qualified retirement plans. RMDs apply to three types of individual retirement arrangements (IRAs). These are traditional IRAs, Simplified Employee Pension (SEP) IRAs and Savings Incentive Match Plans for Employees (SIMPLE) IRAs.

The RMDs also apply to traditional 401(k), 403(b) and 457(b) plans. There is an exception to the RMD withdrawal requirement for Roth IRAs and Roth 401(k)s. There are no distribution requirements for the Roth plans as long as the original owner is living.

Most taxpayers take the RMD based upon the Uniform Lifetime Table in IRS Pub. 590-B. This table assumes there is a beneficiary within 10 years of the IRA owner’s age and calculates a distribution amount based on both ages. If the IRA owner has a spouse more than 10 years younger, a different table is applicable.

Owners of multiple IRAs must calculate the RMD for each plan. However, an IRA owner can elect to withdraw the total RMD amount from any IRA plan.

Some employees over 73 who are still working and are not major owners of a business may be able to defer RMDs until after retirement. Taxpayers should consult with a tax advisor if this exception is applicable.

Many online calculators are available to determine your RMD. Most large financial companies offer an online determination of the correct amount. RMDs start at approximately 3.8% of the December 31 IRA balance. They increase each year after 73. There are also online worksheets on IRS.gov that may be helpful.

The IRS released the current IRA distribution tables in 2021. These tables reflect longer life expectancies and the RMDs are somewhat reduced.

Editor’s Note: An excellent way to fulfill an RMD is to give part or all of the distributions from a traditional IRA to a qualified charity. Qualified charitable distributions (QCDs) are available to individuals over 70½. A benefit of the QCD is that it may fulfill part or all of a taxpayer’s RMD. The QCD is a transfer directly from the IRA custodian to a qualified charity. A QCD up to $108,000 may be transferred in 2025. It is important to act quickly if you plan to do a QCD this year. Your QCD must be completed by December 31, 2025.