A Guide to Required Minimum Distributions (RMDs): 3 Things to Know

Oct 17, 2023


With less than three months left in the year, it’s time to think about end-of-year to-dos. One priority is to satisfy your Required Minimum Distributions, or RMDs, before December 31st.

If you’re a client of Credent, we have probably discussed your RMDs and may have helped you fulfill them already. If you’re not a client or you’re not sure if you need to take an RMD, we can help.

  1. What is an RMD?

Required Minimum Distributions come from an IRS mandate that says that those turning 73 years old or older this year are required to distribute, or take out, a minimum amount from certain tax-deferred retirement accounts, such as 401(k)s and traditional IRAs. If you started taking RMDs in prior years, you should keep taking them.

  1. Why are they important?

If you haven’t satisfied your RMD yet, you still have time. The final deadline for most is December 31st. If this is your first year taking an RMD, you may have an extension, but it is important to talk to your advisor.

While you still have plenty of time, if you miss the deadline, you can incur a 25% penalty on the amount you were required to withdraw.

  1. What’s my next step?

Your advisory team can help you fulfill your RMDs and understand any special circumstances. For example, if you inherited a tax-deferred retirement account, it’s important to talk to your advisor about distribution requirements and how to potentially minimize taxes.

If you satisfy your RMD from investments not held with Credent, be sure to let your advisor know.


If you haven’t satisfied your RMDs yet, call your advisor soon. 

If you don’t have an advisor and need help meeting this deadline, reach out to our team at [email protected]

Schedule an appointment with an advisor in your area.