Required Minimum Distributions for IRAs

How much do you need to take out of your IRA this year? Here's what you need to know.

By Matthew Frankel, CFP – Updated Nov 20, 2025 at 3:19 PM

Key Points

Traditional IRA holders must start RMDs at 73 due to IRS tax-deferral limits.
Calculate RMDs using year-end account balance and IRS life expectancy tables.
Failing to withdraw RMDs incurs harsh financial penalties up to 25%.

If you have savings in a traditional IRA, you're required to start taking withdrawals, known as required minimum distributions, or RMDs, after you reach 73 years of age.

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rmds-for-iras-infographic — Image source: The Motley Fool

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In other words, while IRAs let you save and invest for retirement on a tax-deferred basis, the IRS doesn't just let you defer paying tax on your retirement savings indefinitely -- eventually it wants to get paid. Here's how RMD rules work, and how to calculate your RMD each year.

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Using your account value -- which is defined as the value of your account at the end of the previous calendar year -- divide by your distribution period to determine your RMD. For example, if you have $500,000 in your traditional IRA at the end of 2025, and you're turning 75 years old in 2026, the Uniform Lifetime Table gives an expected distribution period of 24.6 years. Dividing your account's balance by this number shows a 2026 RMD of $20,325.

For a quick reference, here are the current life expectancy factors from the Uniform Lifetime Table for retirees age 72 through 92.

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Data source: IRS.

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Roth IRAs

Want to get tax-free distributions in retirement? A Roth IRA may be right for you.

IRA Basics

Under the umbrella of individual retirement accounts, there are many options.

How Does an IRA Work?

All IRAs aren't created equal. Here's the nitty-gritty.

What Is a Mega Backdoor Roth IRA?

This workaround can help high earners get past Roth IRA income limits.

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About the Author

Matt Frankel, CFP, is a contributing Motley Fool stock market analyst and personal finance expert covering financial stocks, REITs, SPACs, and personal finance. Prior to The Motley Fool, Matt taught high school and college mathematics. He holds a bachelor’s degree in physics from the University of South Carolina, a master’s degree in mathematics from Nova Southeastern University, and a graduate certificate in financial planning from Florida State University. He won a SABEW award for coverage of the 2017 Tax Cuts and Jobs Act. He is also regularly interviewed by Cheddar, The National Desk, and other TV networks and publications for his financial, stock market, and investing expertise.

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