Frequently Asked Questions
What happens if I forget to take my RMD at age 73?
If you miss your RMD deadline, you face an IRS penalty tax equal to 25 percent of the amount you failed to withdraw. However, SECURE 2.0 reduces this penalty to 10 percent if you correct the error in a timely manner, withdraw the missing funds, and submit IRS Form 5329 with a formal letter requesting a waiver for reasonable cause.
Can I take more than the minimum required distribution amount at age 73?
Yes, you can withdraw more than your calculated RMD at any time. However, any excess amount you take in one calendar year cannot be applied toward meeting your required minimum distributions in future years. Every year requires its own independent calculation.
How do I calculate my exact RMD amount at age 73?
To calculate your RMD, take the fair market value of your tax-deferred retirement accounts as of December 31 of the previous year. Divide that balance by the life expectancy distribution factor corresponding to your age from the IRS Uniform Lifetime Table (Table III).
Can I deposit my forced RMD payout back into a Roth IRA?
No, the IRS strictly prohibits rolling over required minimum distribution funds into a Roth IRA or any other tax-advantaged account. You must pay ordinary income tax on the RMD amount. However, once you pay taxes on the distribution, you can invest those remaining net funds into standard taxable brokerage accounts or personal savings.
