Required Minimum Distributions + Roth interaction methodology

RMD basics — IRC §401(a)(9) and §408(a)(6)

The Internal Revenue Code requires that owners of traditional IRAs, SEP-IRAs, SIMPLE IRAs, and most employer plans begin taking minimum distributions by a statutory date. This requirement exists because those accounts received tax-deferred treatment — the government eventually collects its deferred tax, and RMDs are the mechanism for enforcing that collection.

Roth IRAs are expressly excluded from the RMD requirement during the owner's lifetime per IRC §408A(c)(5). This is a fundamental structural advantage of the Roth account: the balance can compound indefinitely without forced distribution, making it the preferred account for assets intended to pass to heirs or to fund late-life spending.

SECURE Act 2.0 — RMD age changes (§107)

RMD Starting Age — SECURE Act 2.0 §107 (effective for 2023 and later):

Born before 1951:           RMD age 70½ (pre-SECURE Act rules)
Born 1951–1959:             RMD age 73  (SECURE Act 1.0 → SECURE 2.0)
Born 1960 or later:         RMD age 75  (SECURE 2.0 §107)

Required Beginning Date (RBD):
  April 1 of the year FOLLOWING the year you reach RMD age.

Example — born 1962:
  RMD age: 75
  Reach age 75: 2037
  RBD: April 1, 2038
  First RMD: must be taken by April 1, 2038 (for year 2037)
  Second RMD: must be taken by December 31, 2038
  Note: taking two RMDs in 2038 may push income into a higher bracket;
        consider taking the first distribution in 2037 to smooth income.

RMD calculation — Uniform Lifetime Table

Annual RMD Formula (IRS Pub 590-B, Uniform Lifetime Table):

RMD =
  Account Balance (December 31 of prior year)
  ÷ Life Expectancy Factor (from Uniform Lifetime Table by age)

Selected Uniform Lifetime Table factors (updated 2022; IRS Pub 590-B):
  Age 73: factor 26.5
  Age 74: factor 25.5
  Age 75: factor 24.6
  Age 76: factor 23.7
  Age 80: factor 20.2
  Age 85: factor 16.0
  Age 90: factor 12.2

Example — age 73, account balance $500,000:
  RMD = $500,000 ÷ 26.5 = $18,868 (minimum required distribution)

Exception — Joint and Last Survivor Table:
  Used when the sole beneficiary is a spouse more than 10 years younger.
  The Joint and Last Survivor Table produces a smaller RMD than the
  Uniform Table. Source: IRS Pub 590-B, Appendix B, Table II.

RMDs aggregate at the IRA level: if you own multiple traditional IRAs, you calculate the RMD for each account separately using that account's December 31 balance, then total them. You can then satisfy the aggregate RMD by withdrawing from any one or combination of traditional IRA accounts. For employer plans (401(k), 403(b)), each plan has its own RMD calculated and satisfied separately.

Roth conversion as RMD-reduction strategy

RMD Reduction Benefit of Pre-RMD Roth Conversion:

Traditional IRA balance: $1,000,000 (age 65; RMD age 75)
Roth conversion over 10 years: $50,000/year = $500,000 converted

Projected traditional IRA balance at age 75 (with 6% growth):
  Without conversion: ~$1,791,000
  With $500K converted: ~$895,500

Age-75 RMD (factor 24.6):
  Without conversion: $1,791,000 ÷ 24.6 = ~$72,805/year
  With conversion: $895,500 ÷ 24.6 = ~$36,402/year

RMD reduction: ~$36,000/year of forced ordinary income eliminated.
At 22% bracket: ~$7,920/year in tax avoided in perpetuity.
10-year present value of that annual benefit (at 4% discount): ~$64,000

This is the core strategic logic behind pre-RMD Roth conversions: paying tax today at a known rate to eliminate future forced taxable income at an uncertain future rate. The conversion also benefits heirs — the Roth IRA they inherit has no lifetime RMD during the owner's life, and inherited Roth distributions are tax-free if the five-year holding period is met.

Edge cases

• First RMD year double-up. Delaying the first RMD to April 1 of the following year means two RMDs in that calendar year — the delayed first and the current-year second. Both are ordinary income. For taxpayers near an IRMAA threshold or Social Security taxation cliff, the double year can create outsized tax cost.
• Still-working exception. Employees still working at their current employer may delay RMDs from that employer's plan until April 1 of the year following retirement. This exception does NOT apply to IRAs or to prior-employer plans.
• QCDs reduce RMD burden. Qualified Charitable Distributions (QCDs) — direct transfers from a traditional IRA to a qualified charity — count toward RMD satisfaction and are excluded from gross income per IRC §408(d)(8). Up to $105,000/year (2026 limit, indexed) in QCDs can satisfy RMD obligations without triggering taxable income.
• RMDs cannot be converted. You cannot convert an RMD to a Roth IRA. The RMD must be distributed first; only amounts above the RMD minimum in a given year can be converted. Attempting to roll an RMD into a Roth IRA is treated as an excess contribution.
• Inherited Roth IRAs — SECURE 2.0 changes. Non-spouse beneficiaries of Roth IRAs are now subject to the 10-year distribution rule under SECURE Act 2.0. While the distributions are tax-free, the forced 10-year liquidation means beneficiaries cannot stretch the tax-free compounding indefinitely as was possible under pre-2020 rules.

Named-expert guidance

Sources

• IRC §401(a)(9) — Required minimum distribution rules
• IRC §408(a)(6) — IRA minimum distribution requirements
• SECURE Act 2.0 §107 — RMD age changes (73 starting 2023; 75 starting 2033 for those born 1960 or later)
• IRS Publication 590-B — Uniform Lifetime Table (Appendix B, Table III) and Joint and Last Survivor Table (Appendix B, Table II)