If you have $1 million in your retirement account -- including traditional IRA accounts and 401(k) and 403(b) plans -- congratulations, you've saved well.
But keep in mind that you can't keep all that money in there forever. The IRS requires you to begin withdrawing money from these accounts -- and pay taxes on those withdrawals -- once you turn 73. These withdrawals are called required minimum distributions, or RMDs.
If you turned 73 in 2025, for example, your first RMD must be by April 1, 2026, and the second is Dec. 31, 2026. If you're older, the deadline is Dec. 31 each year.
So, how much do you have to withdraw each year if you've got $1 million in your account?
The IRS uses a simple formula to compute RMD
The IRS computes that figure based on how much is in the account (as of Dec. 31 of the previous year) and something called your life expectancy factor. That latter data point is not based on personal factors, but comes from a simple table the IRS uses, based on age.
If you turned 73 in 2025, the IRS table puts your life expectancy factor at 26.5 years. It then divides your account balance ($1 million) by this number to get your RMD for 2026. In this case, the RMD turns out to be $37,736. Keep in mind that as you age your life expectancy falls while your account balance is reduced by withdrawals, so your RMD will change every year.
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And if you have multiple retirement accounts, the RMD is computed using the total amount of all of them, though your distributions can come from any account(s) you choose. Usually, the custodian of your account(s) will calculate the RMD for you. But as far as the IRS is concerned, it's your responsibility to take the minimum amount out each year.
These rules don't apply to Roth IRAs, however, because you've already paid taxes on the money in those accounts, so the IRS is less concerned with how you manage them.
