RMD Basics
Avoid the 25% penalty.
What RMDs are
Required Minimum Distributions. The IRS requires withdrawals from traditional IRA/401(k) starting at age 73.
Calculate yours
IRS Worksheet. Or Schwab/Fidelity/Vanguard websites all have free calculators.
Penalty for missing
25% tax on whatever you didn't withdraw. Reduced to 10% if corrected fast.
Auto-RMD
Set up automatic RMD payments at your brokerage. Never miss again.
Roth IRAs
NO RMDs ever during your lifetime. Big advantage of Roth.
QCD strategy
Direct RMD to charity (up to $100,000). Counts as RMD without taxable income.
Quick Tip: Take RMD in January, not December. Less stress, more tax-planning time.