What should I know about required minimum distributions (RMDs)?
Not taking your required minimum distribution (RMD) can have certain tax implications.
Your RMD is the amount you're required to withdraw from your Traditional, Rollover, SEP-, and/or SIMPLE IRAs every year after you've reached 70½. It's calculated annually, based on the value of your accounts at the end of the previous year and your life expectancy. To easily estimate how much you might need to withdraw annually, try our .
Frequently Asked Questions
I turned 70½ last year and have not yet taken my RMD. Will I receive a penalty?
When you turn 70½, you have until April 1st of the following year to take your RMD. For subsequent years, you must take your RMD by December 31st each year. If you do not take a distribution, or withdraw less than required, you may have to pay a penalty equal to 50% of the amount not taken.
If I convert my IRA to a Roth IRA, do I need to take my RMD?
No. However, if you turned 70½ last year and postponed your RMD, you will still need to withdraw that year's RMD prior to converting.
If I take a distribution and plan to roll it over to another IRA within 60 days, must I take my RMD prior to rolling the distribution over?
Yes. If you turned 70½ last year and postponed your RMD, you will need to withdraw your RMD for last year and the current year prior to rolling the distribution over.
Take the next step.
Call 877-673-7970to schedule your personal retirement consultation.
- Review the three easy steps for taking your RMD.
- For more information on how RMDs may impact you, download the Schwab IRA RMD Guide.
Important Information
The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The type of securities mentioned may not be suitable for everyone. Each investor needs to review a security transaction for his or her own particular situation. Data contained here is obtained from what are considered reliable sources; however, its accuracy, completeness, or reliability cannot be guaranteed.
All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Examples provided, including statistical simulations, are provided for illustrative purposes only and are not intended to imply future results you should expect to see. Past performance is no guarantee of future results.