Your Guide to Required Minimum Distributions
What are required minimun distributions (RMDs)
The IRS requires owners of IRAs to begin annual withdrawals from these accounts after they turn age 73. The amount that you have to withdraw, or distribute, is based on your age and the amount you have saved in one or more IRA accounts.
Don't forget your Required Minimum Distribution
You must begin withdrawing a minimum amount by April 1st of the year following age 73. If you wait until April 1, you must withdraw a second RMD by December 31 of the same year. Instead of taking two RMDs in the same tax year, you may want to consider taking your first RMD in the year you reach age 73. Once you begin taking required distributions, you must withdraw every year. Each year thereafter, you'll have until December 31 to withdraw your required amount.
Failing to take your RMD could trigger a 25% (or 10% if corrected in a timely manner) excess accumulation penalty from the IRS on the amount of RMD not distributed. You can ask a Janus Henderson Representative to automate your RMD to help avoid missing the deadline.
Simplify the RMD process
Learn the rules and use the tools that make the RMD process simple and automated. That'll be one less thing you'll have to worry about so you can enjoy retirement.
Are there exceptions for RMDs?
Roth IRAs are typically an exception. Mandatory distributions are not required from a Roth IRA, nor can you satisfy your RMD requirement by withdrawing from a Roth IRA. There is an exception to this rule: if you inherited a Roth IRA account, you are required to distribute from it.
Also, if you work beyond age 73, you may be able to defer distributions from your current employer’s 401(k), 403(b) or employer-sponsored retirement plan until April 1st of the year after which you retire. If you’re still working, please consult your plan administrator to learn more.
How do I calculate my RMD?
Your required minimum distribution (RMD), based on your holdings at Janus Henderson, is provided on your statements.
If you would like help calculating your RMD, please call a Janus Henderson Representative at 800.525.1093, or you can send a message directly from your account using Secure Message Center. As an alternative, you may estimate your own RMD using the RMD Calculator.
If you know your RMD and would like to process the transaction yourself, you may do so online.
What if I have more than one IRA?
After calculating your RMD for each IRA, you may aggregate the total withdrawal amount from one or more of your IRA accounts. If you have other types of retirement plans, such as a 401(k), you will need to calculate and take the RMD from each plan separately. You can only aggregate among like types of retirement plans, such as a group of IRAs. You cannot take an RMD from a 401(k) that was calculated based on an amount in an IRA.
Example calculation if your own multiple IRA accounts
| Prior Year 12/31 Balance | |
|---|---|
| IRA #1 | $50,000 |
| IRA #2 | +$30,000 |
| IRA #3 | +$20,000 |
$100,000 / IRS Life Expectancy 1 = Current Year Required Minimum Distribution
1 The IRS Life Expectancy Multiple can be found in IRS Publication 590.
How do I keep my money working for me?
Generally, a distribution from your Traditional IRA is taxable at your current income rate. That does not mean the investment has to stop working for you. Explore investing your RMD in a Janus Henderson non-retirement account to keep your money invested. Discuss options with a Janus Henderson Retirement Specialist by calling 800.525.1093.
What are my options for withdrawing from my IRA?
You can calculate your RMD online, or call a Janus Henderson Retirement Specialist for assistance. Then you can choose a method of receiving your RMD:
- Request a check or deposit directly to your bank account.
- Exchange into a Janus Henderson non-retirement account.
- Set up an Automatic RMD.
Avoid Hefty Excise Taxes
Take your RMD on time.
If you miss your RMD deadline, the IRS can penalize you in a substantial way. Janus Henderson offers tools to help.
Approaching age 73? Calculate the amount you will need to withdraw.
Don't want to forget your annual RMD? Set up automatic distributions with a Janus Henderson Retirement Specialist at 800.525.1093.
Want to keep investing with your RMD? Open a non-retirement account.
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Get in touch
Set up automatic distributions with a Janus Henderson Retirement Specialist at 800.525.1093.