The IRS tax withdrawal tables come in two separate sets, and they do two different jobs. The life expectancy tables in Publication 590-B set the minimum you must pull from a tax-deferred retirement account each year, known as your required minimum distribution or RMD. The withholding tables in Publication 15-T tell the plan administrator how much federal income tax to hold back before the money reaches you. Handling both correctly keeps you clear of the excise penalty on missed RMDs and prevents a shortfall when you file.
When You Have To Start Taking RMDs
Your starting age depends on your birth year. Born between January 1, 1951 and December 31, 1959, you begin RMDs the year you turn 73. Born on or after January 1, 1960, the age is 75.1Internal Revenue Service. Retirement Topics – Required Minimum Distributions (RMDs) These rules cover traditional IRAs, SEP and SIMPLE IRAs, 401(k)s, 403(b)s, and most other tax-deferred accounts.
The first RMD can wait until April 1 of the year after you reach your RMD age. Every one after that is due December 31. Delaying that first withdrawal means two RMDs land in the same calendar year, which can push you into a higher bracket.2Internal Revenue Service. Retirement Plan and IRA Required Minimum Distributions FAQs
Still working past your RMD age? You can delay withdrawals from your current employer’s plan (not your IRAs) as long as you don’t own more than 5% of the business. Once you retire, that plan’s RMDs must begin by April 1 of the following year. IRAs and plans from prior employers stay on the standard schedule.2Internal Revenue Service. Retirement Plan and IRA Required Minimum Distributions FAQs
Roth IRAs are not subject to RMDs during the owner’s lifetime.3Office of the Law Revision Counsel. 26 USC 408A – Roth IRAs Under SECURE 2.0, the same is now true of designated Roth accounts inside 401(k) and 403(b) plans.1Internal Revenue Service. Retirement Topics – Required Minimum Distributions (RMDs) If you inherit a Roth, distribution rules do apply to you, but the original owner never had to touch it.
Which Life Expectancy Table You Use
Publication 590-B holds three life expectancy tables. The right one depends on whether you own or inherited the account, your marital status, and who you named as beneficiary.4Internal Revenue Service. Publication 590-B – Distributions from Individual Retirement Arrangements (IRAs) – Section: Which Table Do You Use To Determine Your Required Minimum Distribution? Pick the wrong one and your withdrawal comes out wrong.
Uniform Lifetime Table
The default for most owners. Use it if you’re unmarried, if your spouse is 10 years younger or less, or if your spouse isn’t the sole beneficiary. It produces the longest distribution periods among the owner tables, which means smaller required withdrawals.1Internal Revenue Service. Retirement Topics – Required Minimum Distributions (RMDs)
Joint Life and Last Survivor Expectancy Table
Use this table only when your spouse is the sole beneficiary and is more than 10 years younger than you. It reflects the younger spouse’s longer life expectancy, so the distribution period stretches further and the annual RMD comes out smaller than the Uniform Lifetime figure.5Internal Revenue Service. IRA Required Minimum Distribution Worksheet – Spouse 10 Years Younger
Single Life Expectancy Table
This one is for beneficiaries of inherited accounts. Its distribution periods are shorter than the Uniform Lifetime Table because inherited accounts generally have to be drawn down faster. Under the SECURE Act, most non-spouse beneficiaries must empty an inherited account by the end of the tenth year after the owner’s death, though eligible designated beneficiaries including surviving spouses and minor children can still use their own life expectancy.6Internal Revenue Service. Retirement Topics – Beneficiary
Running the Calculation
You need two figures: the account balance on December 31 of the previous year, and the distribution period from the correct table matched to your age as of December 31 of the current year. Divide the balance by the period. That’s your RMD.7Internal Revenue Service. Publication 590-B – Distributions from Individual Retirement Arrangements (IRAs) Withdrawing more is fine. Withdrawing less brings a penalty.
With multiple traditional IRAs (including SEP and SIMPLE IRAs), you calculate each one’s RMD separately, then take the combined total from any single IRA or spread it across several. The same aggregation works for 403(b) accounts. Employer plans like 401(k)s don’t aggregate: each plan’s RMD has to come out of that specific plan.8Internal Revenue Service. RMD Comparison Chart (IRAs vs. Defined Contribution Plans) A 401(k) RMD can’t be satisfied from an IRA.
Penalty for Missing an RMD
Failing to take the full RMD triggers a 25% excise tax on the shortfall. That drops to 10% if you correct it during the window, which generally runs through the end of the second tax year after the penalty year.9Office of the Law Revision Counsel. 26 USC 4974 – Excise Tax on Certain Accumulations in Qualified Retirement Plans Correcting means taking the missed amount and filing a return that reports the tax.
If the miss was a genuine error rather than neglect, the IRS can waive the penalty entirely. File Form 5329, write “RC” and the shortfall amount on the dotted line next to line 54, and attach a written explanation of what went wrong and what you did to fix it.10Internal Revenue Service. Instructions for Form 5329 Common grounds accepted for waiver include a custodian’s administrative mistake, serious illness, or incorrect advice from a financial institution. Take the missed withdrawal as soon as you discover the error; that timing strengthens the request.
Federal Tax Withholding on Retirement Payments
The second set of tables, in Publication 15-T, controls how much federal income tax the payer holds back before sending you the balance. They work along the same lines as payroll withholding tables for wages.11Internal Revenue Service. Publication 15-T Federal Income Tax Withholding Methods
Periodic Payments With Form W-4P
For regular pension or annuity payments on a set schedule, you submit Form W-4P. It captures your filing status, credits or deductions you’re claiming, and other income. The plan administrator plugs those inputs into the withholding rate schedules in Publication 15-T and pulls the resulting dollar amount from each payment.11Internal Revenue Service. Publication 15-T Federal Income Tax Withholding Methods
Nonperiodic Payments With Form W-4R
One-time or irregular withdrawals, like a lump-sum IRA distribution, run through Form W-4R. The default rate is 10%, and you can elect a higher rate on the form if you’d rather not risk an underpayment shortfall at filing.11Internal Revenue Service. Publication 15-T Federal Income Tax Withholding Methods Eligible rollover distributions from employer plans like 401(k)s are treated differently: a mandatory 20% is withheld and you generally cannot reduce it, even if you plan to complete the rollover within 60 days.12Internal Revenue Service. Topic No. 412, Lump-Sum Distributions If you’re moving money between plans, expect that 20% hit on anything paid directly to you.
Using a Qualified Charitable Distribution To Cover Your RMD
Starting at age 70½, you can direct up to $111,000 per year (the 2026 limit) from your IRA straight to a qualified charity. These qualified charitable distributions count toward the RMD, and the donated amount is left off your taxable income entirely. The money has to move directly from the IRA custodian to the charity. Married couples with separate IRAs can each give up to $111,000.
The 70½ threshold is earlier than the RMD starting age of 73 or 75, so QCDs are available before you owe any RMD at all.