Required minimum distributions
Understand why certain retirement accounts must distribute money and how those withdrawals affect a plan.
Reviewed August 25, 2026
A required minimum distribution, or RMD, is an amount that US tax rules generally require an account owner to withdraw each year from certain tax-deferred retirement accounts after reaching the applicable starting age.
How the amount is estimated
The basic calculation divides an eligible account’s prior year-end balance by a life-expectancy factor from an IRS table. The applicable table and timing can depend on the account, owner, beneficiary, employment status, and current law.
The withdrawal is a minimum. Taking more does not usually reduce a future year’s RMD dollar for dollar because the next calculation uses a new balance and age-based factor.
Why it affects the plan
An RMD can create taxable income even when the household does not need portfolio money for spending. The cash may be spent, used for taxes, given away, or reinvested in a taxable account, but the required distribution still leaves the tax-deferred account.
RMDs can therefore affect tax brackets, Medicare-related income, account balances, and the order in which other accounts are used.
Important limits
RMD rules differ across account types, and special rules can apply to workplace plans, spouses, beneficiaries, and inherited accounts. Roth treatment also differs by account and owner status.
Alpha Retire provides a planning estimate based on the account and household information in the model. Confirm the required amount and deadline with the account custodian or a tax professional. The IRS RMD guidance is the authoritative starting point for current federal rules.