New 2025 RMD Tables For Age 73: Your 2025 Retiree Playbook in 3 Easy Steps

Alright, let’s looks into Required Minimum Distributions, or RMDs. If you’re cruising into age 73 in 2025, or perhaps you’re already there, Uncle Sam has a yearly to-do list for you: start taking withdrawals from most of those retirement accounts you’ve so carefully built up. 

Doesn’t it feel a bit like finally getting to the dessert buffet, only to be told you have to eat a specific slice of pie first?

Back in January 2024, I sat down with retired firefighter Joe Ramirez, eyes widening, as I explained that RMDs are essentially Uncle Sam’s annual invoice for the decades of tax deferral you’ve enjoyed. Joe leaned in and asked, “So it’s like paying rent on my own money?” Exactly.

And here’s the thing: that “rent” can be steeper than you think if you mis-time it . A hefty 25% tax penalty if you get it wrong.

But don’t you worry. I’m Michael Ryan, and after more than two decades helping folks navigate these waters, from busy professionals like Sam in Chicago to retirees like Frank down in Florida, I can tell you it’s entirely manageable.

This isn’t just about dodging penalties; it’s about making smart moves with your retirement plan distributions.

Estimate Your 2025 RMD Here

Use this simple estimator to get an idea of your RMD if you’re the original account owner. For inherited accounts or specific spousal situations, different rules may apply and this tool will guide you accordingly.”

This estimate uses the Uniform Lifetime Table. Remember to consult official IRS publications or a financial advisor for precise calculations and strategies, especially if your situation involves inherited accounts or a significantly younger spousal beneficiary. Understanding these nuances ensures you manage your retirement funds wisely and stay compliant.

Step 1: Understand the What & Who of RMDs

First things first, RMDs are mandatory withdrawals. The SECURE Act 2.0 shifted the starting line, so if you hit 72 in 2023 or later, your RMDs kick in at age 73. Think of it as a new chapter in your financial life, one that requires a bit of proactive planning.

Which accounts are we talking about?

Generally:

• Traditional IRAs
• SEP IRAs
• SIMPLE IRAs
• 401(k) plans
• 403(b) plans
• Most 457(b) plans
• Profit-sharing plans

The big sigh of relief? Roth IRAs are exempt from RMDs for you, the original owner. That’s a significant advantage if you’ve been building up a Roth IRA.

However, a word to the wise: inherited accounts, including inherited Roth IRAs, play by a different often more complex set of RMD rules. Don’t get caught out; those are a different conversation.

Step 2: Nail the Deadlines & Calculate with Confidence

Timing and accuracy are your best friends here. 
Get this wrong, and the taxman cometh with a not-so-friendly letter.

Key RMD Deadlines for Age 73:

• Your Very First RMD (if turning 73 in 2025): You have until April 1, 2026.
• All Subsequent RMDs: Due by December 31 each year. (IRS)

Quick‑Scan Call‑Out:

• 26.5 is your magic number at 73 for the Uniform Lifetime Table.
• April 1, 2026: First RMD deadline if you turn 73 in 2025.
• Dec 31: All future RMDs.

—> Michael Ryan Money Tip: 
Avoid bracket creep by spacing distributions.
Taking two RMDs in one year (if you delay the first) can have surprising tax consequences. 
Seriously, who wants to give Uncle Sam more than his due?

That April 1st deadline for the first RMD seems generous, right? But, as Frank learned, if you delay that first one to March 2026, your second RMD (for 2026) is still due by December 31, 2026. That’s two taxable distributions in one year.

For Frank, this would have meant an unnecessary jump in his tax bracket. We ran the numbers, and taking the first RMD in the year he turned 73 (even though he didn’t have to) saved him a decent chunk. It’s a classic case where “kicking the can” can cost you. This could even affect your good monthly retirement income planning.

The RMD Tables: Your Core Reference

The RMD tables are your go-to reference for calculating required withdrawals at age 73-don’t guess and risk a penalty. Wondering how much to take out?

The IRS Uniform Lifetime Table spells out your minimum with clear, skimmable numbers-see the table below for your exact distribution factor

1. Uniform Lifetime Table: 

This is your primary tool.

On March 15, 2025, one of my clients, a marathoner turned art collector, stared at her statement and quipped, “So I divide by 26.5? Where did they pull that number?”

That 26.5 comes straight from the IRS’s Uniform Lifetime Table.

Here’s a bold bet from my years of observation: 

• Contrary to every textbook, I predict the IRS will overhaul the life‑expectancy divisor by 2028 to mirror booming centenarian rates.
• Mark your calendars for December 31, 2027, to check if I was right! 
• For now, though, 26.5 it is.

(Effective Jan 1, 2022. This is what you use for 2025. Source: Fidelity)

2. Joint Life and Last Survivor Table: 

Use this only if your spouse is your sole beneficiary AND is more than 10 years younger.

This table (often provided by institutions like TIAA) has different factors because it considers two life expectancies, often resulting in a smaller RMD.

For instance, if you’re 73 and your spouse is 60, the factor from such a table might be 28.6, not 26.5. This nuance is often missed but can make a difference. For more on spousal situations, you might explore options for spousal IRAs.

How to Calculate (Simplified with the “Michael Ryan RMD QuickCalc” Concept)

Instead of just manual math, think of it this way. And this is a framework I call the “Michael Ryan RMD QuickCalc”:

1. Input Value: Get your total account balance(s) from December 31, 2024.
2. Apply Divisor: For age 73, divide by 26.5 (Uniform Table).
3. Flag Pitfalls: The tool (conceptually, a simple spreadsheet) would then cross-reference this with your first-RMD timing to flag if you’re at risk of that “two RMDs in one year” tax bump.

Example: $400,000 IRA balance / 26.5 = $15,094.34 RMD. (I’m working on making a downloadable “Michael Ryan RMD QuickCalc” spreadsheet available. You can also check out my general RMD calculator for now. Stay tuned!)

Multiple Accounts? Here’s the Strategy:

• IRAs (Traditional, SEP, SIMPLE): 
  Calculate the RMD for each separately. But you can withdraw the grand total from any one IRA or a combination. This gives you strategic flexibility.
  Perhaps take more from an account with lower growth expectations. Wondering should I aggregate my RMDs? Often, for IRAs, you can.
• 401(k)s, 403(b)s: 
  RMDs must be calculated and taken from each plan separately. No co-mingling here.
  It’s important to keep track if you have an old 401k account somewhere.

Step 3: Strategize Withdrawals & Handle Slip-Ups

Getting the money out is mandatory. Doing it smartly is where the art comes in. 
Are you merely complying, or are you commanding your financial future?

Penalties: The IRS Doesn’t Play

Miss your RMD, or don’t take enough? The penalty is 25% of the shortfall. Ouch. (Learn more about the RMD penalty and deadline.)
If you catch and fix it quickly (usually within 2 years), it might be reduced to 10%. If you realize you’ve made a mistake:

1. Withdraw the correct amount ASAP.
2. File IRS Form 5329 with your tax return.
3. Consider attaching a letter of explanation if requesting an RMD penalty waiver. Proactive honesty goes a long way.

Michael Ryan Money Insider RMD Tips:

• Rethink that First-Year Delay: 
  Seriously, model out the tax impact of one vs. two RMDs in that second year. It’s a common, costly oversight.
• Qualified Charitable Distributions (QCDs): 
  If you’re 70½+, you can donate up to $108,000 (2025 QCD limit, indexed for inflation) directly from your IRA to charity. It counts towards your RMD and isn’t taxable income.
  I had a client who used this to significantly lower her tax bill while supporting causes she loved. It was a big win for her.
• Systematic Withdrawals: 
  Consider monthly or quarterly RMD withdrawals. It smooths out cash flow and avoids trying to time the market with one big withdrawal.
• Tax Withholding: 
  RMDs are taxable. You can opt for withholding to avoid a surprise tax bill. This is a key part of overall retirement planning.
• The Bigger Picture: 
  How do RMDs fit with Social Security, pensions, other income sources? A client once asked, “Michael, my RMD is pushing me into a higher Medicare premium bracket (IRMAA)! What can we do?” We looked at her total income picture and found ways to sequence other withdrawals to mitigate it. RMDs don’t live in a vacuum; they are part of your asset allocation for retirees.
• Lesser-Known Tip – Roth Conversions: 
  Sometimes, it can make sense to withdraw more than your RMD from a traditional IRA and convert that extra amount to a Roth IRA, especially if you believe your tax rate might be higher in the future. You pay taxes on the conversion now, but future Roth growth and withdrawals are tax-free. This is a nuanced strategy – definitely one to discuss with a pro, and you can explore this with tools like a Roth conversion calculator.

Common Questions from the 73-Crowd:

• “Still working at 73 – do I take RMDs?” 
  From IRAs, yes. From your current employer’s 401(k)? Maybe not until you retire, if the plan allows and you’re not a 5%+ owner. Check your plan docs!
• “Reinvest my RMD into another retirement account?” 
  Generally, no. Once the money is withdrawn as an RMD, it’s out. You can reinvest it in a taxable brokerage account, but not back into an IRA or 401(k) to avoid the RMD. Still wondering can I reinvest my RMDs? The short answer is usually no, not into a tax-advantaged account.
• “What are the tax implications of RMDs on inherited property or other assets?” 
  While RMDs themselves are about retirement accounts, large withdrawals can impact your overall taxable income, which could indirectly relate to how you handle capital gains on inherited property. It’s all connected.

Your RMD Playbook: Final Thoughts

Look, RMDs at 73 aren’t a cryptic code. Understand the tables (26.5!), respect the deadlines (April 1st for the first, then Dec 31st), and be proactive. This is just the next stage of your financial journey.

Honestly, I’ve seen folks stress immensely about this, often unnecessarily. With a clear plan, you can handle this with confidence. Isn’t peace of mind the best retirement gift you can give yourself?

The key is to move from just “complying” to “strategizing.” And if you’re looking at your statements and feeling like Joe Ramirez before our chat – a bit wide-eyed – that’s perfectly normal.

Consider this your nudge to either build your own “Michael Ryan RMD QuickCalc” or chat with your financial advisor. For more ideas on what to do with RMDs, keep exploring your options.

You’ve planned and saved for decades. Now, let’s make sure these withdrawals are handled just as wisely.

• Sharing the article with your friends on social media – and like and follow us there as well.
• Sign up for the FREE personal finance newsletter, and never miss anything again.
• Take a look around the site for other articles that you may enjoy.

Note: The content provided in this article is for informational purposes only and should not be considered as financial or legal advice. Consult with a professional advisor or accountant for personalized guidance.