IRA withdrawals: RMDs for age 70½ and over

Once you reach age 70½, you are required to take annual Required Minimum Distributions (RMDs) from your retirement accounts.

Need IRA help? Call 866-855-5636

The amount of your RMD is calculated

The amount of your RMD is calculated by dividing the value of your Traditional IRA by a life expectancy factor, as determined by the IRS. You need to calculate your RMD for each IRA separately, but you have the flexibility take your total RMD amount from either a single IRA or a combination of IRAs. However, RMDs from Qualified Retirement Plans or Inherited IRAs must also be calculated separately, and can only be taken from their respective accounts. You do not need to take RMDs for Roth IRAs. 

Traditional IRA RMD rules

  • Step

    See when to start taking RMDs

    Your first RMD must be taken by 4/1 of the year after you turn 70½. Subsequent RMDs must be taken by 12/31 of each year. If you don’t take your RMD, you’ll have to pay a penalty of 50% of the RMD amount.

    Get started with our RMD Calendar.

    RMD Calendar

    Enter your birthdate to see when you need to start taking RMDs.

    Birthday
    Show RMD Date

  • Step

    Calculate your RMD amount

    Use our RMD Calculator to find the amount of your RMD based on your age, account balance, beneficiaries, and other factors. If you have multiple IRAs, you must calculate each account individually, but you can take your total RMD amount from one IRA or a combination of IRAs.

    Questions? Call us at 866-855-5636.

  • Step

    Decide how to receive your RMD

    You can make a one-time (also known as "lump-sum") withdrawal or a series of withdrawals, or schedule automatic withdrawals.

    Whether you want to transfer your RMD funds to another account, take automatic withdrawals, or take your RMD as cash, we can help. If you’re a Schwab client, call us at 866-855-5636.

At Schwab, we offer clients several withdrawal options including:

  • Requesting a check online.
  • Writing your own checks via the IRA Check Writing feature (Schwab clients, login to access IRA Check Writing or learn more).
  • Using Schwab MoneyLink
  • Transferring RMD funds in-kind. (i.e. no need to sell) to a non-retirement account (at Schwab or elsewhere).
  • Coming into a Schwab branch directly.
  • Calling us to request a distribution verbally at 866-855-5636.
  • Submitting an IRA Distribution form.

Roth IRA rules

Required minimum distributions are not required for Roth IRAs.

Want to convert your Traditional IRA to a Roth? Learn more about Roth IRA conversions.

Inherited IRA RMD rules

With an Inherited IRA—not an IRA that you’ve simply transferred on your own—there are several important factors that impact your annual distributions. Keep in mind:

  • You need to take a distribution regardless of your age.
  • Generally, you need to take distributions over your lifetime or within five years after the original account holder passed away.
  • With an Inherited Traditional IRA, you will pay taxes on distributions. Rollover, SEP, and SIMPLE IRAs become Inherited Traditional IRAs.
  • With an Inherited Roth IRA, you will not pay taxes on distributions.

Learn more about Inherited IRA distribution rules.

Common questions

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    Questions about IRA withdrawals or RMDs? Call 866-855-5636.


Tax information disclosure

This tax information is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, Schwab recommends that you consult with a qualified tax advisor, CPA, financial planner, or investment manager. Depending on the type of account you have, there are different rules for withdrawals, penalties, and distributions.  Please understand these before opening your account.

Please read the Schwab Intelligent Portfolios Solutions™ disclosure brochures for important information, pricing, and disclosures related to the Schwab Intelligent Portfolios and Schwab Intelligent Portfolios Premium programs.  
 
Schwab Intelligent Portfolios® and Schwab Intelligent Portfolios Premium™ are made available through Charles Schwab & Co. Inc. ("Schwab"), a dually registered investment advisor and broker dealer. Portfolio management services are provided by Charles Schwab Investment Advisory, Inc. ("CSIA"). Schwab and CSIA are subsidiaries of The Charles Schwab Corporation.

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