Required Minimum Distributions

Are You of RMD Age?


Recently, Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to provide emergency support and help Americans navigate the financial impact of the COVID-19 pandemic. Under the Act, RMDs due in 2020 have been waived for IRAs and certain retirement plan accounts; in some cases, this includes the first-year 2019 RMD. Find details under CARES Act – Waiver of 2020 RMDs.

When you reach age 72,1 the IRS requires you to begin annual withdrawals from most retirement accounts (excluding Roth IRAs). These withdrawals are called required minimum distributions, or RMDs.

It's important to keep track of your RMDs. Each year's RMD must be taken by December 31, with the exception of your first year RMD. There's a hefty 50% penalty tax if you don't take them on time, or if you take less than the full amount. We encourage you to set up an automatic withdrawal plan so you don't miss an RMD. You also have the option to keep your money working for you by reinvesting your withdrawal. Give us a call to automate your RMDs today.

1 If you were born before 7/1/1949, you were required to begin RMDs at age 70½, and you must continue to take them even if you are not 72 yet. This is in accordance with RMD provisions that went into effect on January 1, 2020, under the SECURE Act.

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Inherited an account?
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RMDs are required for the following accounts:2

  • Traditional, Rollover, SEP, SARSEP and SIMPLE IRAs
  • 403(b), governmental 457(b) and qualified retirement accounts
  • Designated Roth accounts in a 401(k), 403(b) and governmental 457(b). RMDs are not required for Roth IRAs during the owner’s lifetime.

Learn about your deadlines, withdrawal options, calculating your distribution and more below.

2 If you have a beneficiary account in one of the account types, please visit the Inheritance page for information about RMD rules specific to inherited assets.

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Learn when you have to begin taking RMDs and the deadlines for first year and subsequent year RMDs. 


Age at which RMDs must begin

Deadline for IRAs

Deadline for 403(b), governmental 457(b) and qualified retirement accounts

Consequences for failing to take an RMD

CARES Act – Waiver of 2020 RMDs

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Withdrawal Options and Forms

Find out how to submit RMD withdrawal instructions for one-time and automatic payment plans. Also consider reinvesting your RMD in another American Century Investments account or directing your RMD to a charity.

How to request an RMD withdrawal

Withdrawal options—single versus multiple accounts

Set up an automatic withdrawal plan

Reinvest your RMD

Give your RMD to charity

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How It's Calculated

Learn how your RMD is calculated. If your RMD amount isn't shown on your account statement, call us and we’ll calculate it for you. Or, calculate it yourself using our calculator.

Calculating Your RMD

Required Distribution Example

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Taxes and Future Contributions

Learn about how RMDs are taxed and other miscellaneous information, such as if you're allowed to continue contributing to your retirement accounts.

Tax Information

Contributions after reaching RMD age

IRS Circular 230 Disclosure: American Century Companies, Inc. and its affiliates do not provide tax advice. Accordingly, any discussion of U.S. tax matters contained herein (including any attachments) is not intended or written to be used, and cannot be used, in connection with the promotion, marketing or recommendation by anyone unaffiliated with American Century Companies, Inc. of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties.

This information is for educational purposes only and is not intended as tax advice. Please consult your tax advisor for more detailed information or for advice regarding your individual situation.