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What You Need to Know About RMDs

Due to deadlines, this online article is more up to date than the print version in the December 2023 Retiree Update.

Required Minimum Distributions (RMDs) are minimum withdrawals that the IRS requires from most retirement plan accounts every year once the account owner reaches a certain age. Since you are receiving a Colorado PERA benefit, your PERA Defined Benefit (DB) Plan is already paying out the required amount to satisfy an RMD for the DB Plan. But you may need to take action to satisfy an RMD if you participate in the PERA Defined Contribution (DC) Plan or voluntary retirement plans like:

  • 403(b) plans
  • 401(k) and 457(b) plans, like the PERAPlus Plans
  • Traditional IRAs
  • SEPs and SARSEPs
Required Minimum Distribution text on blue background with pie chart symbol.
Andrii Dodonov/iStock via Getty Images  Plus

With the exception of your first RMD after you reach the IRS-required age, you must take your RMD each year by December 31. Your first RMD date depends on when you were born. If your date of birth is:

  • On or before June 30, 1949, your RMD age is 70½.
  • From July 1, 1949 – December 31, 1949, your RMD age is 72.
  • On or after January 1, 1950, your RMD age is 73.

If you do not take an RMD, don’t withdraw enough money, or don’t take your distribution by the deadline, the RMD amount not withdrawn is subject to a 25% penalty from the IRS. Keep in mind that you can always withdraw more than your required amount. Any amount you withdraw is considered taxable income unless it was taxed before you contributed the money to your plan or it can be withdrawn tax-free (like qualified withdrawals from Roth accounts).

More information on RMDs, including worksheets to help you calculate your RMD amount, can be found on or by speaking to a trusted financial advisor.