Download the Schwab app from iTunes®Get the AppClose

What should I know about required minimum distributions (RMDs)?

  • Share this page

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.

   Was this helpful?  

Take the next step.

Call 877-673-7970to schedule your personal retirement consultation.

Important Information