Understand your required minimum distributions (RMDs)

The rules around when and how much you must withdraw from your IRA and/or workplace retirement plans can get tricky. We'll walk you through it.

  1. Watch the video for the basics on RMDs.
  2. Review the five steps to see how RMDs apply to you and what to do next.
  3. Log inOpens in a new window to check your RMD, or call us at 800-842-2252.

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During your working years, you have the benefit of saving money with no taxes.

This gives you more money to save and makes it easier to build your nest egg.

However, the IRS requires you to begin taking minimum distributions from your IRAs and employer retirement plan accounts by your required beginning date (or at retirement, if your employer plan includes that option), whether you need the money or not.

The amount you’re required to take is called your required minimum distribution or RMD.

RMDs must be taken annually for all tax-deferred retirement accounts you have, including employer-sponsored plans like 403(b)s, 457(b)s and 401(k)s, as well as IRAs and Keoghs.

If you’re still working, you may be able to delay RMDs on your retirement account with your current employer. However, you still must take RMDs on any other tax-deferred retirement accounts you have.

It’s important to understand the rules and your options for taking RMDs. Having an overall income plan that includes your RMDs can help you pursue your financial goals and make the most of your money.

Whether you want to set up automatic monthly withdrawals to help pay for daily expenses, create lifetime income payments through an annuity, reinvest the money for future needs, fund a loved one’s education, or give to charity, we can help you with a plan that’s right for you.

The amount of your RMD for each account is based on the balance in your account on December 31 of the previous year and your life expectancy factor, which is determined by the IRS based on your age. This factor will vary if you have a spouse who is 10 years younger than you and is your sole beneficiary, or if you inherited an account.

For example, if you had $350,000 in one of your tax-deferred retirement accounts at the end of last year and you divided that amount by your life expectancy factor of 27.4, your RMD this year for that account would be $12,774.

When and how you take your RMDs can affect your tax bill and your long-term finances especially since the penalty for not taking RMDs on time is 25% of the amounts not taken. So be sure to take your RMDs by the deadline.

For more details about taking your RMDs, view the information on this web page.

For most TIAA accounts, you can view the RMDs you need to take this year by logging in to your account online.

If your plan allows it, you can also initiate withdrawals while you’re online.

Request your RMDs at least 60 days before the deadline to help ensure any IRS and plan requirements such as a spousal waiver are taken care of in time. In most cases, withdrawals will not take that long. If you sign up for automatic, recurring withdrawals, no additional paperwork is required after the first year.
In general, RMDs must be taken for the first time no later than April 1 of the year after you reach your RMD applicable age and are due every December 31 after that.

This is a new chapter in life, and making sure you’re getting the most from your RMDs can help you pursue a more secure financial future. If you have questions or need support, TIAA is always here to help.


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5 steps to taking your RMDs

RMDs can be complicated. We’re here to make it as easy as possible.

These five steps can help guide you.

For all the years you've been saving, taxes on your retirement accounts have been deferred with the intention of helping your savings grow. The IRS requires that you begin taking minimum distributions from your IRAs and employer retirement plan accounts by your required beginning date (or retirement, if later for employer retirement plan accounts). For IRAs (other than Roth IRAs), your required beginning date is April 1 of the year following the calendar year in which you reach your RMD Applicable Age. For employer-sponsored retirement plans, your required beginning date is April 1 of the year following the calendar year in which you reach your RMD Applicable Age or retire from the plan sponsor, if later.

Age 70.5 Age 72 Age 73 Age 75 
(effective 2033)
For those born prior to
7/1/1949		 For those born on or after
7/1/1949 through 12/31/1950		 For those born between
1/1/1951 and 12/31/1958		 For those born
1/1/1960 or later

 

Important note: Federal guidance is needed to determine RMD Applicable Age for those born in 1959

In general, RMDs must be taken annually starting the year you reach the Required Beginning Date:

  • Employer-sponsored retirement plans such as 401(a)s, 403(b)s, 457(b)s and 401(k)s
  • IRAs (includes Traditional, SEP, SIMPLE but not Roth)
  • Keoghs

All RMDs are taxed in the year they are taken.

In some cases, RMD rules may be different. More detailsOpens dialog

RMDs are due from each plan

In general, RMDs due on any plan must be taken from that account. For accounts in the same plan with different providers, RMDs generally must be taken through each provider. However, if you have more than one 403(b) plan or more than one IRA, the rules may be different. More details.Opens dialog

First-time RMDs must be taken no later than April 1 of the year following the year you reach your Required Beginning Date (RBD)

If you wait to take your RMDs between January 1 and April 1 the year after your RBD, you still have to take your next RMD by December 31 that same year, which will increase your income and may put you in a higher tax bracket for that year.

Subsequent RMDs must be taken annually no later than December 31

Request your withdrawals at least 60 days before the deadline. 

Required minimum distributions from Roth accounts in employer sponsored retirement plans are no longer required beginning January 1, 2024. RMDs due in 2023 are still required, including RMDs due to individuals who reach age 73 in 2023 that may be taken in 2024. 

TIAA calculates your required minimum distribution (RMD) amount each year using a life expectancy factor that is provided by the IRS. Required minimum distributions from Roth accounts in employer sponsored retirement plans are no longer required for taxable years beginning after December 31, 2023. For RMD payments beginning January 2024 and beyond, Roth balances will be excluded from the calculation and will not be available as a source to satisfy the RMD obligation. 

Log in at TIAA.org/myRMD to see RMDs for your TIAA accounts.

Not registered? Register nowOpens in a new window to create a user ID and password for your account.

To view your RMDs sign in to your online account.Opens in a new window This information will be available by the end of January in the year you reach your RMD Applicable Age. Some specialized TIAA accounts may not appear online (inherited IRAs, brokerage and mutual fund IRAs).

RMDs will appear for the year in which they are required. If you are taking a first-time RMD between January 1 and April 1 the year after your RBD, the amounts for your first RMDs will not be available online. Contact your TIAA advisor or call 800-842-2252 to take your deferred distribution.

For RMDs on accounts outside of TIAA, contact the provider.

Keep track of RMDs for multiple accounts.

Having a plan that includes your RMDs may help improve your long-term financial health. Here are some tools that may help.

Use your RMD to jump start your savings goals

If interested in saving your RMD, putting it into high-yield savings products, such as a CD or Money Market account, may be a viable option. Consider using your RMD to fund your day-to-day financial needs.

What are some of the reasons you should consider banking your RMD?

  • Offers easily accessible liquid assets
  • Cash on hand gives you the benefit of not dipping into your long-term investments
  • Quickly sets up savings for a vacation, home improvement, and other projects you have been considering
  • Allows you to pay off debts, relieving you of that burden
  • Reduces stress, providing a sense of freedom and flexibility knowing you have the cash from your RMD in a bank
  • Saving money can be advantageous because it provides people the opportunity to earn interest while keeping their money safe, providing some peace of mind
  • It acts as a safety net
  • Gives you the option to put it into an emergency fund for unanticipated expense
  • Open a Certificate of Deposit

Try the Retirement Income IllustratorOpens in a new window

This online tool allows you to see your RMDs year by year and compare them to lifetime income options.

Use our budgeting worksheetOpens pdf

Map out your retirement expenses and see what your income needs may be.

Consider lifetime income options for creating income you can’t outlive.2

These options can help fulfill your RMD requirements while providing income that won’t run out.2 Contact us to create an income plan for safe spending in retirement.

Want to reinvest or gift your RMDs? Here are some optionsOpens dialog .

You can take your RMDs each year or set up an automatic withdrawal plan for your TIAA accounts. Be sure to request your RMDs at least 60 days before you want them to be withdrawn. More detailsOpens dialog.

Log in at TIAA.org/myRMD to request your withdrawal.

Go to TIAA.org/myRMDOpens in a new window

Not registered? Register nowOpens in a new window to create a user ID and password for your account.

Have questions? Contact us at 800-842-2252.

More about RMDs

Secure

Want an income that won’t run out?

Lifetime income payments from an annuity can satisfy your RMDs and provide income you can’t outlive.2

Automate

Never miss an RMD

You can set up recurring withdrawals to have RMDs taken automatically each year from your IRAs and employer plan accounts at TIAA.

Simplify

Have several retirement accounts?

Consider consolidating your retirement accounts to make RMDs easier.1

Contact us

We’re here to help

We can help you understand your options and create a withdrawal strategy that works for you.

Have questions? Call 800-842-2252.

1 Before rolling over assets, consider your other options. Compare the differences in investment options, services, fees and expenses, withdrawal options, required minimum distributions, other plan features and tax treatment. Speak with a TIAA consultant and your tax advisor regarding your situation. Learn more at TIAA.org/reviewyouroptionsOpens pdf.

2 Subject to the claims-paying ability of the issuer.

3 Other fees and expenses apply to continued investment in the funds and are described in the funds’ current prospectuses. Certain securities may not be suitable for all investors. Securities are not FDIC insured and are not a deposit or other obligation of or guaranteed by any bank or TIAA. Securities are subject to investment risk, including possible loss of the principal amount invested.

This material is for informational or educational purposes only and does not constitute fiduciary investment advice under ERISA, a securities recommendation under all securities laws, or an insurance product recommendation under state insurance laws or regulations. This material does not take into account any specific objectives or circumstances of any particular investor, or suggest any specific course of action. Investment decisions should be made based on the investor’s objectives and circumstances.

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