Frequently Asked Questions

Your Required Beginning Date for RMDs is April 1 of the year following the year in which you reach age 70½. If you are in an employer-sponsored plan and are still working for that employer, check with your plan administrator to discuss whether distributions can be delayed.

In general, the amount you need to withdraw is calculated each year as follows: Total value of your retirement plan (on 12/31 of previous year) divided by your life expectancy factor from the appropriate IRS table.

Significant penalties can result from missing the IRS deadlines that apply to RMDs or from taking too small a distribution.

For qualified employer plans, the employer is responsible for determining the RMD amount and assuring that the RMD is distributed from the plan. For IRAs and 403(b) plans, the account owner is responsible for calculating and taking RMDs. Regardless of who is responsible for calculations, the taxpayer is responsible for any penalties.

If you have more than one IRA (Traditional, Rollover, SEP, SAR-SEP, SIMPLE), you can take the combined RMDs of all IRAs from any one or more accounts. The same is true for multiple 403(b) accounts. However:

• IRA RMDs cannot be taken from qualified employer-sponsored retirement or 403(b) plans, and vice versa.
• RMDs must be taken from each plan if you are a participant in more than one qualified employer-sponsored retirement plan.

There are several options that you can consider for the money. You can:

• Automatically reinvest the RMD into a T. Rowe Price nonretirement account.
• Contribute to a college savings plan.
• Contribute to a donor-advised fund.