With Traditional IRAs, you must take your first RMD by April 1 of the year following the year in which you turn age 70½. You must then take an RMD by December 31 each year thereafter.
If you have multiple IRAs, you must calculate the appropriate RMD for each one. However, the total distribution amount can then be taken from any one or more IRAs to satisfy the required amount.
Once the RMD is distributed, you don’t have to spend it, but you may choose to reinvest it in a taxable account. An RMD cannot remain in the tax-deferred account.
Generally, your RMDs are taxed as regular income within the year they are taken. RMDs can also be subject to state and local taxes. Please consult a tax advisor for more detailed information.
If you don’t take the correct RMD amount, IRS penalties may apply.
NOTE: If you have employer retirement accounts, you will have to contact your current and/or prior employer to calculate the RMD and request a distribution. Or, if your employer retirement account(s) is with T. Rowe Price, you can log in to the workplace retirement website to learn more.
If you have a Traditional or Rollover IRA account with us, you have three options for setting up your RMDs.
If you are over age 70½ and would like to support charitable organizations with your RMD, there are two tax-smart ways to do so.
The T. Rowe Price Program for Charitable GivingSM offers a flexible, tax-efficient way to support charities. As a donor-advised fund, our program allows you to make charitable contributions and receive eligibility for an immediate tax deduction.
- One distribution can support multiple charities
- No annual limit
A QCD is an IRA distribution that you direct to a qualified charity. You may then exclude the distribution amount from your reported gross income. This means that the distribution is not considered taxable income.
- Multiple distributions required to support more than one charity
- Annual limit of $100k
All investments are subject to market risk, including the possible loss of principal.
This material has been prepared by T. Rowe Price Retirement Plan Services, Inc., for general and educational purposes only. This material does not provide fiduciary recommendations concerning investments or investment management. T. Rowe Price Retirement Plan Services, Inc., its affiliates, and its associates do not provide legal or tax advice. Any tax-related discussion contained in this website, including any attachments/links, is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding any tax penalties or (ii) promoting, marketing, or recommending to any other party any transaction or matter addressed herein. Please consult your independent legal counsel and/or professional tax advisor regarding any legal or tax issues raised in this material.
The T. Rowe Price Program for Charitable Giving is an independent, nonprofit corporation and donor-advised fund founded by T. Rowe Price to assist individuals with planning and managing their charitable giving.