Required Minimum Distributions (RMDs) for Married Couples Explained

Quick answer

• RMDs are mandatory withdrawals from certain retirement accounts after you reach a specific age.
• For married couples, each spouse takes their own RMD from their own retirement accounts.
• The RMD amount is calculated based on the account balance and your age, using IRS-provided life expectancy tables.
• If you inherit an IRA, you may also have RMD obligations, even if you are married.
• Failing to take an RMD can result in a significant penalty tax.
• It’s crucial to track your RMDs carefully and consult with a financial advisor or tax professional.

Who this is for

• Individuals who have reached the age at which RMDs are required and have retirement accounts like traditional IRAs or 401(k)s.
• Married individuals who are concerned about their own RMD obligations or how their spouse’s RMDs might affect their financial planning.
• Retirees or those approaching retirement who need to understand their income sources and tax implications from retirement accounts.

What to check first (before you act)

Your RMD Eligibility Age

You generally must start taking RMDs from most retirement accounts once you reach age 73. This age can change based on legislation, so always check the current IRS guidelines. For accounts like Roth IRAs, RMDs are not required during the original owner’s lifetime.

Your Retirement Account Types

Not all retirement accounts are subject to RMDs. Traditional IRAs, SEP IRAs, SIMPLE IRAs, and most employer-sponsored plans like 401(k)s and 403(b)s have RMD requirements. Roth IRAs are generally exempt from RMDs for the original owner. Inherited IRAs, however, usually have RMD rules that apply to the beneficiary.

Your Account Balances and Calculation Method

The amount of your RMD is determined by the account balance as of December 31st of the previous year, divided by a life expectancy factor provided by the IRS. The IRS publishes different tables (e.g., Uniform Lifetime Table, Joint Life and Last Survivor Expectancy Table) depending on your circumstances. For married couples, each spouse calculates their RMD based on their individual accounts and the relevant IRS table.

Your Spouse’s RMD Status

While you each take your own RMDs, your spouse’s RMD obligations can impact your joint financial picture. If your spouse is also taking RMDs, this increases your combined taxable income. Understanding their RMD schedule can help with overall cash flow planning.

Any Inherited IRA Status

If either you or your spouse have inherited an IRA, there are specific RMD rules for beneficiaries. These rules can be complex and depend on factors like whether you are a spouse beneficiary and when the original account holder passed away.

Step-by-step (simple workflow)

1. Determine Your RMD Start Age

What to do: Confirm the current IRS age at which you must begin taking RMDs. This age has been updated by legislation in recent years.
What “good” looks like: You know the exact age (currently 73 for most) when your RMD obligation begins.
A common mistake and how to avoid it: Assuming the age is fixed. Avoid this by checking the IRS website or consulting a tax professional for the most current age.

2. Identify All RMD-Eligible Accounts

What to do: List all your traditional IRAs, 401(k)s, 403(b)s, SEP IRAs, and SIMPLE IRAs.
What “good” looks like: A comprehensive list of all accounts that will require RMDs.
A common mistake and how to avoid it: Forgetting about smaller or less frequently accessed accounts. Avoid this by reviewing statements from all financial institutions where you hold retirement assets.

3. Obtain Prior Year-End Account Balances

What to do: Find the exact balance of each RMD-eligible account as of December 31st of the previous year.
What “good” looks like: Accurate year-end statements for all relevant accounts.
A common mistake and how to avoid it: Using an estimated or current balance. Avoid this by only using the official December 31st balance provided by the account custodian.

4. Find the Correct IRS Life Expectancy Table

What to do: Determine which IRS life expectancy table applies to your situation. For most individuals, it’s the Uniform Lifetime Table. If your spouse is more than 10 years younger and is the sole beneficiary, you might use the Joint Life and Last Survivor Expectancy Table.
What “good” looks like: You have identified the correct table to use for your calculation.
A common mistake and how to avoid it: Using the wrong table, which can lead to an incorrect RMD amount. Avoid this by carefully reading the IRS instructions or asking your financial advisor.

5. Locate Your Life Expectancy Factor

What to do: Once you’ve identified the correct table, find the factor corresponding to your age for the current RMD year.
What “good” looks like: You have the specific number from the IRS table that matches your age.
A common mistake and how to avoid it: Picking the wrong age or factor from the table. Avoid this by double-checking your age and the corresponding factor.

6. Calculate Your RMD for Each Account

What to do: Divide the December 31st balance of each account by its corresponding life expectancy factor. For accounts with multiple IRAs, you can aggregate the total RMD amount and withdraw it from any single IRA, but you must take the required amount from each employer plan.
What “good” looks like: You have a specific dollar amount for each RMD.
A common mistake and how to avoid it: Calculating RMDs for employer plans as if they were IRAs (i.e., taking the total from one plan). Avoid this by understanding that RMDs from employer-sponsored plans must generally be taken from each specific plan.

7. Determine Your Spouse’s RMDs

What to do: If your spouse is also taking RMDs, repeat steps 2-6 for their accounts.
What “good” looks like: You have a clear understanding of your spouse’s RMD obligations.
A common mistake and how to avoid it: Overlooking your spouse’s RMDs, which can affect your joint tax planning. Avoid this by discussing your retirement income strategies together.

8. Plan for the Withdrawal

What to do: Decide from which account(s) you will take your RMD. Consider tax implications and your cash flow needs.
What “good” looks like: A clear plan for how and when you will take the distribution.
A common mistake and how to avoid it: Waiting until the last minute to withdraw. Avoid this by planning to take your RMD early in the year or in installments.

9. Take the Distribution

What to do: Initiate the withdrawal from your chosen account(s).
What “good” looks like: The funds are transferred to your bank account or reinvested as needed.
A common mistake and how to avoid it: Forgetting to take the distribution. Avoid this by setting calendar reminders or automating the withdrawal if possible.

10. Report on Your Tax Return

What to do: Report the RMD as taxable income on your federal and state tax returns.
What “good” looks like: Your taxes are filed accurately, reflecting the RMD income.
A common mistake and how to avoid it: Not reporting the RMD, leading to underpayment penalties. Avoid this by ensuring your tax preparer is aware of your RMDs.

Common mistakes (and what happens if you ignore them)

Mistake	What it causes	Fix
Missing the RMD start age	Failure to take RMDs when required, leading to penalties.	Stay informed about current IRS RMD ages and set reminders.
Forgetting about inherited IRAs	Not taking RMDs from inherited accounts, resulting in penalties.	Understand the specific RMD rules for inherited IRAs and track them separately.
Using the wrong life expectancy table	Calculating an incorrect RMD amount, potentially leading to under- or over-withdrawal.	Carefully review IRS Publication 590-B and consult a tax professional if unsure.
Not accounting for employer plan RMD rules	Mishandling RMDs from 401(k)s or similar plans, leading to penalties.	Remember that RMDs from employer plans typically must be taken from each plan individually.
Delaying the withdrawal until year-end	Stress, potential for missed deadlines, and less time for tax planning.	Plan to take your RMD early in the year or in installments.
Not tracking RMDs from multiple accounts	Overlooking one or more RMDs, leading to penalties on the missed distributions.	Create a spreadsheet or system to track all RMD-eligible accounts and their required amounts.
Assuming Roth IRAs have RMDs	Unnecessarily withdrawing from Roth IRAs, reducing tax-free growth.	Confirm that Roth IRAs are generally exempt from RMDs for the original owner.
Incorrectly calculating the RMD amount	Taking too little or too much, both of which can have consequences.	Double-check your calculations, using the correct account balance and life expectancy factor.
Not reporting RMDs as income	Underpaying taxes and incurring IRS penalties and interest.	Ensure all RMDs are reported as taxable income on your tax return.
Not considering spouse’s RMDs in planning	Unexpectedly higher joint tax liability or cash flow strain.	Discuss retirement income strategies with your spouse and consider the combined impact of both your RMDs.
Using the previous year’s balance	Calculating an incorrect RMD based on outdated information.	Always use the December 31st balance from the <em>prior</em> year for the current year’s RMD calculation.
Not understanding the penalty for missing RMDs	Significant financial loss due to IRS penalties.	Be aware that the penalty for failing to take an RMD is typically 25% of the amount that should have been withdrawn, though it can be reduced.

Decision rules (simple if/then)

• If you are age 73 or older, then you likely need to start taking RMDs because that is the current IRS age for most retirement accounts.
• If you have a traditional IRA, then you will need to take an RMD because traditional IRAs are subject to RMD rules.
• If you have a Roth IRA, then you likely do not need to take an RMD during your lifetime because Roth IRAs are generally exempt for the original owner.
• If you inherited an IRA from your spouse, then you may have special RMD rules, potentially allowing you to delay RMDs until you reach the age your spouse would have been required to take them.
• If your spouse is more than 10 years younger than you and is your sole beneficiary, then you may use the Joint Life and Last Survivor Expectancy Table to calculate your RMD, potentially resulting in a smaller withdrawal.
• If you have multiple traditional IRAs, then you can calculate the total RMD for all of them and take the entire amount from any one or a combination of those IRAs.
• If you have an employer-sponsored plan like a 401(k), then you generally must take the RMD from each individual 401(k) plan you participate in.
• If you are still employed by the company sponsoring your 401(k) and are not a 5% owner, then you may be able to delay RMDs from that specific 401(k) until you retire.
• If you fail to take your RMD, then you will likely face a penalty tax of 25% of the amount that should have been withdrawn, though this can sometimes be reduced to 10% if corrected promptly.
• If you need the funds from your RMD for living expenses, then take the distribution as planned to meet your income needs.
• If you do not need the funds from your RMD, then you can still take the distribution and reinvest it in a taxable account if desired, but you must take the withdrawal.
• If you are unsure about any aspect of RMD calculations or rules, then consult a qualified tax professional or financial advisor because the IRS rules can be complex.

FAQ

What is the current age for RMDs?

The age for RMDs has been updated by legislation. Currently, it is generally 73 for most retirement accounts. Always confirm the latest IRS guidelines.

Do married couples take RMDs together?

No, each spouse is responsible for taking their own RMD from their own retirement accounts. The calculation is individual.

Can I avoid taking RMDs?

Generally, no, if you have traditional retirement accounts and have reached the RMD age. Roth IRAs are an exception for the original owner.

What happens if I don’t take my RMD?

You can face a significant penalty tax, typically 25% of the amount that should have been withdrawn, although this can sometimes be reduced.

Can I take my RMD from any of my IRAs?

For traditional IRAs, you can aggregate the total RMD amount and withdraw it from any one or a combination of your IRAs.

What if my spouse is much younger?

If your spouse is more than 10 years younger and is your sole beneficiary, you may be able to use a special IRS table for a potentially lower RMD amount.

Is an inherited IRA subject to RMDs?

Yes, inherited IRAs almost always have RMD requirements for the beneficiary, and the rules can be complex.

Can I use my RMD for anything I want?

Yes, once withdrawn, the RMD funds are yours to use as you see fit, though they are taxable income.

Do I have to take my RMD the same year I turn 73?

You must start taking RMDs in the year you reach the required age. For example, if you turn 73 in 2024, your first RMD is for 2024.

What this page does NOT cover (and where to go next)

• Specific tax bracket implications of RMDs (Consult a tax professional).
• Detailed strategies for optimizing RMD withdrawals for long-term financial planning (Explore retirement income planning resources).
• Rules for specific types of inherited IRAs or retirement plans not covered here (Refer to IRS publications or a financial advisor).
• Investment choices within retirement accounts after RMDs are taken (Consult an investment advisor).
• Estate planning considerations related to remaining retirement account balances (Seek advice from an estate planning attorney).