Before you get started
The Internal Revenue Service (IRS) requires you to begin taking money annually from your traditional, SIMPLE, SEP and SARSEP IRAs when you reach age 73. For some retirement accounts, including 403(b)s, you must generally begin taking required minimum distributions (RMDs) when you reach age 73 or the year in which you retire, if later.
Things to consider
- IRA distributions, including any federal and/or state tax withholding, taken during the calendar year are reported on Form 1099-R. View the tax form schedule to see when forms will be available.
- RMDs are coded as “normal distributions" on Form 1099-R. They are generally taxed as ordinary income and counted toward your total taxable income for the year.
- Your RMD must be calculated separately for each IRA you own. However, you can withdraw the total amount from 1 or more of your IRAs. The same rules apply to each 403(b) account you own.
- 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 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.
- If you fail to take your total RMD amount in a year, you may be subject to a 25% tax penalty on any amount that wasn’t withdrawn
