RMD amounts are provided on quarterly statements for investors age 73 and older with Capital Bank and Trust Company (CB&T) traditional IRAs, SIMPLE IRAs, SEP IRAs, SARSEP IRAs and 403(b)s (including Texas ORPs). In most cases, the RMD section will fall on page 2 or 3 of the statement. The RMD amount displayed on quarterly statements is calculated based on the Internal Revenue Service (IRS) Uniform Lifetime Table, unless elected otherwise, using the account's value as of December 31 of the prior year and your date of birth.
Note: If you turn 73 in 2026, your RMD amount will not display on your quarterly statement. Contact us if you would like Capital Group to calculate your 2026 RMD amount.
Your RMD is calculated by dividing your account’s prior year-end balance by the applicable IRS life expectancy factor. Since the account’s balance and your factor change each year, your RMD must be calculated annually.
If you have multiple IRAs, or other tax-deferred retirement accounts subject to an RMD, you must calculate the RMD amount for each account individually.
RMD amounts are provided on quarterly statements for investors age 73 and older with CB&T traditional IRAs, SIMPLE IRAs, SEP IRAs, SARSEP IRAs and 403(b)s (including Texas ORPs). In most cases, the RMD section will fall on page 2 or 3 of the statement. The RMD amount displayed on quarterly statements is calculated based on the IRS Uniform Lifetime Table, unless elected otherwise, using the account's value as of December 31 of the prior year and your date of birth.
Note: If you turn 73 in 2026, your RMD amount will not display on your quarterly statement. Contact us if you would like Capital Group to calculate your 2026 RMD amount.
To request CB&T calculate and automatically distribute your RMD amount each year, on the Required Minimum Distribution (RMD) Request (PDF), select Calculation by CB&T. CB&T will calculate your RMD using the applicable IRS table, based on the information you provide, and your account’s year-end value. Then select how and when you want your RMD amount distributed each year. You can also contact us to make this request.
Each IRA and/or 403(b) account is calculated separately and does not take into consideration any additional IRA or retirement plan you may have. RMDs are recalculated each year in accordance with IRS guidelines.
RMDs need to be calculated separately for each traditional, SIMPLE, SEP and/or SARSEP IRA, but the total can be withdrawn from 1 or more of your IRAs. The same rules apply to each 403(b) and/or Texas ORP account you own.
RMDs from 401(k), 457, money purchase plan and profit-sharing plan accounts must be calculated and taken separately from each plan.
Note: RMDS do not apply to Roth IRAs in your lifetime.
A change in marital status can impact which IRS table you use to determine your life expectancy factor, which could increase or decrease the amount you are required to distribute.
For the year your marital status changes, if you use the Joint Life and Last Survivor Expectancy Table, you may still calculate your RMD using the table’s applicable factor. For the following year’s, you should use the Uniform Lifetime Table.
You determine how you would like your RMD calculated. RMD amounts are provided on quarterly statements for investors age 73 and older with CB&T traditional IRAs, SIMPLE IRAs, SEP IRAs, SARSEP IRAs and 403(b)s (including Texas ORPs). In most cases, the RMD section will fall on page 2 or 3 of the statement. The RMD amount displayed on quarterly statements is calculated based on the IRS Uniform Lifetime Table, unless elected otherwise, using the account's value as of December 31 of the prior year and your date of birth.
Note: If you turn 73 in 2026, your RMD amount will not display on your quarterly statement. Contact us if you would like Capital Group to calculate your 2026 RMD amount.
CB&T can calculate your RMD using the applicable life expectancy factor, based on your account’s beneficiary, and can send the distribution to your bank account or as a check.
You may prefer to calculate your own RMD if:
You must take your total RMD amount each year. However, you can take that amount incrementally throughout the year or in a lump sum.
When you complete the Required Minimum Distribution (RMD) Request (PDF) for CB&T to calculate and distribute your RMD, you can elect to receive it in increments monthly, quarterly or semiannually, or as a lump sum annually.
In most cases, once you reach age 73, the IRS requires you to take RMDs annually from retirement plans, including traditional, SEP, SARSEP and SIMPLE IRAs.
There are some exceptions when the assets are still held in an employer retirement plan, like a 403(b), 401(k), profit-sharing or other defined contribution plan. If you’re still working for the employer that sponsors your plan, you can generally wait until the later of retirement or until you’re 73 to begin taking your RMDs.
Consult a tax advisor or financial professional for help with your particular situation.
The IRS requires you take your total RMD amount each year by December 31.
You can delay taking your first distribution until April 1 of the year after you reach age 73. If you wait, you’ll have to take two distributions in that same year: the prior year’s RMD by April 1 and the current year’s RMD by December 31.
No. You can delay taking the first distribution until April 1 of the year after you reach age 73. If you wait, you’ll have to take two distributions in that same year: the prior year’s RMD by April 1 and the current year’s RMD by December 31.
For the years following, you must take your annual RMD by December 31.
No. Effective in 2023, the SECURE 2.0 Act increased the RMD age from 72 to 73. Prior to the SECURE Act of 2019, the RMD age was 70½.
Yes, investors can use their RMD to make a qualified charitable distribution (QCD). You can complete the IRA Qualified Charitable Distribution Request (PDF) and provide the charity’s name and address as the payee information for the check. A signature guarantee is required.
Future distribution requests may not require a signature guarantee if the amount is $100,000 or less and the check is being sent to the same organization and pay order.
Note: Federal and state withholding does not apply to QCDs, but they are still reported on Form 1099-R as normal distributions.
For accounts where CB&T automatically calculates and sends RMDs, the total amount is taken proportionately from each fund.
For accounts where the owner is calculating the RMD amount, you can designate a specific dollar amount for withdrawal from each fund.
The IRS requires you to take RMDs out of most retirement accounts at age 73. RMDs continue until your IRA account value is depleted.
Yes, RMDs are generally fully taxable. The IRS taxes RMDs as ordinary income. This means distributions will count toward your total taxable income for the year. Consult your tax advisor to determine your tax liability.
Distributions from IRAs, including RMDs, are reported on Form 1099-R for the calendar year in which the distribution occurred. RMDs are coded as “normal distributions” from the account for IRS reporting.
Review the tax form schedule to see when forms will be available.
You may be subject to a penalty of 25% on any amount of an RMD not taken by the deadline.
For more information, refer to IRS Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs). Consult a tax advisor or financial professional.
Yes, federal income tax withholding applies, and certain states also require income tax withholding.
You must make a withholding election when establishing a recurring automatic RMD and for any one-time distributions taken. If you do not make an election or opt out of withholding, Capital Group is required to withhold 10% of the distribution for federal income tax.
It depends. When you withdraw money from an IRA, your state may require you to have income tax withheld from the distribution. Each state’s requirements are different.
Review State tax withholding for withdrawals on IRAs and qualified plans for more information and consider consulting a tax advisor or financial professional.