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You may not have counted your "half birthday" since you were about seven. So what's special about turning 70½?
A lot, actually. When you reach that age, the IRS requires you to take a Minimum Required Distribution (MRD) from your retirement accounts.
Get Started
Fidelity can guide you through the process of taking your MRD, which can be described in three steps:
- Learn: We'll explain how your MRD is determined, and you can get more details from our Minimum Required Distributions FAQ.
- Calculate: Fidelity's MRD Calculator can help you calculate how much you must withdraw each year.
- Distribute: We can help you set up automatic MRD withdrawals and reinvest those assets so you can make the most of your retirement money.
What's an MRD?
Beginning in the calendar year following the year you turn 70½, IRS regulations require you to withdraw a minimum amount of money from retirement accounts (like traditional IRAs and 401(k)s) each year. This amount is called a minimum required distribution, or MRD. The IRS also refers to them as Required Minimum Distributions, or RMDs.
How Distribution Amounts are Determined
Minimum required distributions are determined by your age and
your account balance and are based on your life expectancy. If
you have a spousal beneficiary who is more than 10 years younger
than you, and s/he is the sole beneficiary for the entire distribution
year, you can base your MRD on your joint life expectancy.
Uniform Lifetime Table for Minimum Required
Distributions (Source: IRS)
| Age | 70 | 75 | 80 | 85 | 90 | 95 | 100 | 105 | |
| Years | 27.4 | 22.9 | 18.7 | 14.8 | 11.4 | 8.6 | 6.3 | 4.5 | |
| Min. % | 3.6% | 4.4% | 5.3% | 6.8% | 8.8% | 11.6% | 15.9% | 22.2% |
The table shows the minimum required distribution periods (based on age and the expected number of years for distributions) and percentages for tax-deferred accounts for unmarried owners, married owners whose spouses are not more than 10 years younger, and married owners whose spouses are more than 10 years older and are not the sole beneficiaries of their accounts. Source: IRS
- Use Fidelity's MRD Calculator to determine your projected annual required distribution amounts.
Deadlines for Withdrawals
For traditional IRAs, you must begin taking minimum required distributions by April 1 of the year following the year in which you turn 70 ½. The same generally holds true for 401(k)s and other qualified retirement plans. All distributions after the first distribution must be made annually by December 31.
Note: Minimum required distribution rules don't apply to Roth IRAs.
Tax Penalties
Failure to withdraw the MRD annually may result in
substantial tax penalties. Ordinary income tax rates apply to all withdrawals
of earnings and pre-tax contributions, but if you fail to take the full
minimum required distribution, the penalty may be 50% of the amount not
taken.
View FAQs about Minimum Required Distributions.
- Guidelines for required withdrawals from retirement accounts after age 70½
- Fidelity’s MRD Tracker shows MRD estimates and year–to–date distributions.
- Minimum Required Distribution brochure (PDF)
- Ready to set up minimum required distributions from your IRAs? Enroll using the Automatic Withdrawals tool.
- Contact a Retirement Representative at 800-544-4774 or use the Retirement Income Planner to determine a strategy for your required distributions.
- Due to recent legislation, MRDs can be donated, federally tax–free directly to a charity. Contact a Retirement Representative at 800–544–4774 for more information.
