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Calculate your RMD

If you are age 72, you may be subject to taking annual withdrawals, known as required minimum distributions (RMDs) from your tax-deferred retirement accounts, such as a traditional IRA. Questions? Call 800-435-4000.

Need to take your RMD from your Schwab account? See your RMD amount and learn more about how we've automated things to make distributions easy.


Calculate your inherited IRA RMD

For those who inherited an IRA due to the death of the original account holder. Get started.

Once you have your RMD, what's next?

  • Automate it
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  • Talk to us
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  • Move it to Schwab
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Quick answers to Frequently Asked Questions (FAQs) about RMDs

Depending on your date of birth, the IRS requires you to take money out of most types of retirement accounts. These mandatory withdrawals are called required minimum distributions (RMDs). Note: The RMD age changed to 72 when the SECURE Act passed in 2019. If you turned 72 before 2020, you may be subject to RMDs. If you turned 72 in 2020 or beyond, your RMDs begin at age 72.

In general, you should take your RMDs by the end of the year (December 31).
If you've turned 72 this year, you have the option to complete your first RMD by April 1 of next year. If you do this, you'll need to take two distributions in the same tax year:

  • Complete your first RMD by April 1.
  • Complete your second RMD by December 31.
  • This could have tax implications. For more information, consult with our tax advisor.

If you don't take the full amount of your RMD, you may be liable for an IRS penalty of up to 50% of the portion of the RMD that was not withdrawn. If you’ve already scheduled or taken the full amount of your RMD at another financial institution, you don't need to withdraw additional funds from your Schwab IRA(s).

You must take an RMD for these types of retirement accounts:

IRAs (Individual Retirement Accounts)

  • Traditional
  • Rollover
  • Inherited
  • SEP (Simplified Employee Pension)
  • SIMPLE (Savings Incentive Match Plan for Employees)

Qualified Retirement Plans1 (QRPs)

  • QRP/Keogh
  • Individual 401(k)
  • 403(b)(7)

Generally, no, you don't need to take an RMD for a Roth IRA unless you inherited one.

Because the SECURE Act changed the laws regarding inherited IRAs, people will generally fall under one of two rules. Those under the old rules may be required to take RMDs from inherited IRAs. Those under the new 10-year rule may not have an annual RMD. We recommend consulting with your tax or financial advisor, as these new rules can be complex. Learn more about beneficiary types and distribution options.

If the IRA owner passed away before 2020, you will likely fall under the old distribution rules. Certain eligible designated beneficiaries can also fall under the old distribution rules. We recommend consulting with your tax or financial advisor to determine which distribution rules apply in your situation. Learn more about beneficiary types and distribution options.

  • Surviving spouses 
  • Minor children up to age of majority 
  • Disabled individuals—under strict IRS rules 
  • Chronically-ill individuals 
  • Individuals no more than 10 years younger than the IRA owner, such as siblings near the same age

If you are not an eligible designated beneficiary, or you inherited the IRA after 12/31/2019, you fall under the new 10-year distribution rules. Which means you can distribute the assets any way you want, as long as all the assets have been distributed before the end of the 10th year. There's no annual RMD under the 10-year rule. If you fail to distribute all of the assets after the 10th year, those assets will be subject to a 50% penalty, or excise tax.

You can use the Traditional IRA calculator if you've inherited an IRA from a spouse.

The amount of your RMD is usually determined by the fair market value (FMV) of your IRA as of December 31 of the previous year, factored by your age and your life expectancy using the uniform life expectancy method. Sometimes FMV and RMD calculations need to be adjusted after December 31. If you had a transfer or rollover to your Schwab retirement account(s), a conversion from a traditional IRA to a Roth IRA and back, or any correction for security price after year-end, please call us at 877-298-8010 so we can recalculate your RMD.

Yes, you can withdraw more than the RMD from your IRAs without IRS penalty. Remember, these withdrawals will generally be taxable as ordinary income and won't satisfy your RMD requirements in future years. We recommend consulting with your tax advisor.

The total amount of your RMD is generally taxed as ordinary income at your personal federal income tax rate. State taxes may also apply. Your tax liability and any tax withholding you elect are based on your home (legal) address.

No, RMDs can't be reinvested back into an IRA or 401(k), or rolled into another tax-favored retirement account. So, if you don't need it for living expenses, what can you do? Invest it in a taxable brokerage account. Save it in a bank account. Donate to a charity. Contact us for ideas suited to your needs.

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