A comprehensive, reader-friendly breakdown of the current age requirement, deadlines, tax effects, and planning strategies for Required Minimum Distributions (RMDs).
The 401k mandatory withdrawal age remains one of the most important retirement rules affecting Americans in 2025. As of today, the mandatory age to begin taking Required Minimum Distributions (RMDs) from traditional 401(k) accounts, traditional IRAs, 403(b)s, and most other tax-deferred retirement plans is 73. This requirement affects millions of workers reaching retirement age as well as individuals who are still employed but hold tax-deferred accounts.
In 2025, understanding how these rules apply—especially after changes through the SECURE Act and SECURE 2.0—is critical for financial stability, tax planning, and long-term retirement success. This expanded guide delivers fresh, detailed, verified information to help retirees and future retirees navigate every aspect of the rule.
Why the 401k Mandatory Withdrawal Age Matters More Than Ever
RMDs are more than just required withdrawals. They influence tax brackets, retirement income, investment strategy, healthcare costs, and estate planning.
Because withdrawals from tax-deferred accounts are treated as ordinary income, the federal government requires individuals to begin taking money out at the 401k mandatory withdrawal age to ensure taxes are eventually paid on decades of untaxed growth.
The age increase from 72 to 73 took effect in 2023 and remains active through 2025. Millions of Americans born in 1952 are now hitting milestone birthdays requiring their first-ever RMDs.
This rule affects:
- Retirees already collecting Social Security
- Workers planning to retire soon
- High-income earners with large 401(k) balances
- Individuals with inherited 401(k)s
- Anyone coordinating tax planning during retirement
Clarity becomes crucial as retirement structures become more complex.
How the 401k Mandatory Withdrawal Age Changed Over Time
Understanding how withdrawal rules evolved helps retirees identify which rules apply to them.
Historical Timeline of RMD Ages
| Year | RMD Age | Notes |
|---|---|---|
| Before 2020 | 70½ | Default for decades |
| 2020–2022 | 72 | SECURE Act raised age |
| 2023–2025 | 73 | SECURE 2.0 increased age |
| Beginning 2033 | 75 | Scheduled for those born in 1960 or later |
This means the mandatory withdrawal age will not rise again until the next major increase in 2033.
Who Must Take RMDs at the 401k Mandatory Withdrawal Age
RMDs apply to:
- Traditional 401(k)s
- Traditional IRAs
- 403(b) plans
- 457(b) plans (non-Roth)
- SEPs and SIMPLE IRAs
- Profit-sharing plans
- Government retirement accounts
They do not apply to:
- Roth IRAs (during the owner’s lifetime)
- Roth 401(k)s beginning in 2024
- After-tax contributions inside 401(k)s
- Health Savings Accounts (HSAs)
- Non-retirement brokerage accounts
These distinctions matter because many Americans hold multiple retirement accounts simultaneously.
When Exactly You Must Take Your First RMD
The deadline depends on your birthday year and personal situation.
If you turn 73 in 2025
- First RMD deadline: April 1, 2026
- Second RMD deadline: December 31, 2026
This dual-withdrawal year often results in higher taxable income, which may increase Medicare premiums, tax brackets, and Social Security taxation.
If you turned 73 in 2024
- First RMD was due April 1, 2025
- Second RMD is due December 31, 2025
If you turned 72 before 2023
You are already taking RMDs under the old rules.
Important Exception: Still Working at 73
Some individuals can delay their first RMD beyond age 73.
You may delay RMDs if:
- You are still working at age 73
- You own less than 5% of the company employing you
- Your workplace 401(k) allows the “still working exception”
You must still take RMDs if:
- You own 5% or more of the company
- You have traditional IRAs (these never qualify for exceptions)
- You have 401(k)s from previous employers
- Your plan documents do not include the exception
This rule is vital for individuals who continue working well into their 70s.
How Much You Must Withdraw at the Mandatory Age
Your RMD is calculated based on IRS life-expectancy tables.
Basic Formula
RMD = Account balance (Dec. 31 of previous year) ÷ Life-expectancy factor
Example:
- Account balance on Dec. 31: $450,000
- Age 73 life factor: 26.5
- RMD = $450,000 ÷ 26.5 = $16,981
This amount becomes mandatory—and taxable.
How Roth 401(k) Rules Changed Starting in 2024
A major shift now benefits many workers.
Roth 401(k) RMD Rules
- Before 2024: Roth 401(k)s still required RMDs
- After 2024: Roth 401(k)s no longer require RMDs for the account owner
This mirrors Roth IRA rules and removes one of the biggest drawbacks of Roth 401(k)s.
What Happens If You Miss Your RMD?
The IRS penalty for failing to take an RMD is now reduced—but still significant.
Penalties
- 25% penalty on the amount not withdrawn
- 10% penalty if corrected within 2 years
- Penalty can be waived in some hardship cases
Given the seriousness of RMD penalties, retirees should confirm calculations carefully.
How RMDs Affect Taxes
RMDs are treated as ordinary income, meaning they may influence:
- Federal income tax bracket
- State income taxes (if applicable)
- Medicare Part B and D premiums
- Taxation of Social Security benefits
- Eligibility for credits like Saver’s Credit or ACA subsidies
Even a modest RMD can push a retiree into a higher bracket.
Strategies to Prepare Before the 401k Mandatory Withdrawal Age
1. Start Voluntary Withdrawals Early
Taking smaller withdrawals in your mid-60s can ease future tax bills.
2. Consider Roth Conversions
Converting traditional 401(k) funds into Roth accounts reduces future RMDs.
3. Use Qualified Charitable Distributions (QCDs)
Beginning at 70½, IRA owners can donate funds directly to charity, reducing taxable distributions.
4. Merge Old 401(k)s
Consolidating retirement accounts simplifies RMD calculations.
5. Adjust Investment Strategy
As RMD age approaches, some retirees shift to income-focused strategies to avoid selling growth assets during downturns.
6. Use “Bucket Strategies”
Organizing retirement funds into time-based buckets helps sequence withdrawals more efficiently.
How the 401k Mandatory Withdrawal Age Affects Inherited Accounts
Beneficiaries must follow different rules depending on relationship:
Spouse beneficiary
- Can treat the account as their own
- Can roll it into their IRA
- Can delay RMDs depending on age
Non-spouse beneficiary
- Most must empty the account within 10 years
- RMDs may be required each year depending on the beneficiary category
Inherited accounts are among the most misunderstood areas of retirement law.
Understanding the Future Increase to the RMD Age
Beginning in 2033, the RMD age increases from 73 to 75 for individuals born in 1960 or later.
Why it matters
- Younger generations will have more time for tax-deferred growth
- More flexibility for Roth conversions
- Longer planning horizons for tax minimization
- Higher potential balances leading to larger future withdrawals
The shift does not affect current retirees but will significantly change retirement planning for Americans in their 40s and early 50s today.
Practical Checklist for Retirees Approaching RMD Age
✔ Confirm your exact RMD starting age
✔ Check your Dec. 31 balance each year
✔ Review IRS life expectancy tables
✔ Plan your withdrawal timing strategically
✔ Review tax brackets before withdrawing
✔ Consider early withdrawals to reduce future RMDs
✔ Review Medicare impacts before taking large distributions
✔ Evaluate Roth conversion opportunities
✔ Ensure beneficiaries are up to date
✔ Keep detailed yearly records of withdrawals
Frequently Asked Questions
Q1: What is the current 401k mandatory withdrawal age?
The mandatory withdrawal age is 73 for anyone reaching age 73 in 2023, 2024, or 2025.
Q2: Do Roth 401(k)s require mandatory withdrawals?
No. Since 2024, Roth 401(k)s are exempt from RMDs during the owner’s lifetime.
Q3: Can I delay my RMD if I’m still working past 73?
Yes—if you are still employed, own less than 5% of the company, and your plan allows the “still working exception.”
Final Thought
The 401k mandatory withdrawal age affects income, taxes, and long-term financial planning in ways many retirees overlook. If you have insights or questions about preparing for RMDs, feel free to share your thoughts in the comments to help others navigate the journey.
Disclaimer:
This article is for informational purposes only and does not provide financial, investment, or tax advice. Speak with a licensed financial advisor or tax professional for personalized guidance.