Yes No No Yes No Yes Do you have a retirement account in an employer’s defined contribution plan (e.g., 401(k), 403(b), etc.)? A 25% (or 10% if corrected quickly) penalty applies for RMD amounts not timely withdrawn. You can contest a penalty by filing Form 5329 with the IRS. Continue on to learn how the RMD will be calculated. Do you have other retirement accounts with a former employer and/or an IRA other than a Roth IRA? Are you still working for this employer and will you continue doing so through at least January 1st next year? No Yes No Yes Is your spouse the sole beneficiary of your account and more than 10 years younger than you? Reference the Joint Life and Last Survivor Expectancy Table (Table II) for your distribution period using your age at the end of the current year (Appendix B of IRS Pub 590-B). Reference the Uniform Lifetime Table (Table III) for your distribution period using your age at the end of the current year (Appendix B of IRS Pub 590-B). Divide the prior end-of-year value by your distribution period to determine the amount of your RMD for this year. If you have multiple IRAs, you can aggregate your RMDs and satisfy them with a distribution from one IRA. Generally, you must satisfy the RMD from each employer plan account separately (with the exception of 403(b)s, which can be aggregated). If you have an active retirement account with an employer plan and qualify for the “still-working” exception, you may be able to roll other retirement accounts in and avoid RMDs until you retire. Yes No Do you have an IRA other than a Roth IRA? No Yes Do you have multiple retirement accounts? No additional planning considerations. Are you considered a “5-percent owner” (as defined by the IRS and subject to attribution rules) of the entity that employs you? If your employer’s plan allows the “still-working” exception, you do not need to take an RMD from this account. You are not subject to an RMD. Sorry, you must take an RMD from your non-Roth IRA(s). Sorry, you must take an RMD from your employer’s account (unless it is in a Roth account). Sorry, you must take an RMD from your non-Roth IRA(s) and your former employer’s account(s) (unless it is in a Roth account). START HERE To avoid taking two RMDs in the same tax year, consider taking your first RMD in the year you reach age 73 or 75 (depending on the year you were born), rather than waiting until your RBD. For subsequent years, RMDs must be satisfied by December 31st. You must satisfy your first RMD(s) by your RBD, which is April 1st of the year following the year you reach age 73 or 75 (depending on the year you were born).
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