How much you are required to withdraw annually depends on your IRA balance and your age. You can figure out your RMD by dividing your account balance by the distribution period for your age, shown in the life expectancy table on the IRS website.
For example, if you have $100,000 in a traditional IRA and you turned 73 in 2025, then you would divide your $100,000 account balance by the 16.4-year distribution period designated for 73-year-olds; your resulting RMD would be about $6,098. That is the minimum amount that you must take from your IRA this year, although you are free to withdraw more if you choose. Previously, retirees had to begin IRA distributions the year they turned 72, but the Secure Act 2.0 increased RMD age to 73.
Failure to withdraw your full RMD by the end of the year results in a 25% penalty on the amount that you should have withdrawn. Continuing with the example above, if you withdrew only $1,000 from your traditional IRA this year, you'd owe a 25% penalty on the remaining $2,773 that you should have taken. You'd end up forfeiting about $1,275 to the government -- far more than you would have owed in income tax had you withdrawn your full RMD. However, if you corrected your mistake within two years, the penalty could be reduced to 10%.