What Is the Required Minimum Distribution (RMD) for a $600,000 Retirement Account?

Tax-deferred accounts like traditional IRAs and 401(k) plans let workers reduce their taxable income (by saving pretax dollars) in the present in exchange for paying income tax on the contributions and any gains in the future.

However, the tax bill cannot be delayed indefinitely. At a certain age, individuals with tax-deferred investment accounts must start taking required minimum distributions (RMDs).

Here’s what you need to know about RMDs, including how to calculate the RMD withdrawal amount on a $600,000 retirement account.

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What are required minimum distributions (RMDs)?

A required minimum distribution (RMD) is the smallest amount of money that must be withdrawn from certain retirement accounts each year. RMD rules apply to the original account holders and beneficiaries with the following plans:

• Traditional IRAs
• SEP IRAs
• SIMPLE IRAs
• Traditional 401(k)s
• Traditional 403(b)s
• 457(b)s

Importantly, Roth accounts are not subject to RMDs while the original account holder is alive, but the RMD rules become applicable when beneficiaries inherit Roth accounts.

In general, RMDs must be completed by Dec. 31. The only exception is the first RMD, which can be postponed until April 1 of the following year.

At what age do RMDs begin?

The Secure Acts of 2019 and 2022 gradually raised the age at which RMDs begin. This year, tax-deferred account holders aged 73 and older must take RMDs. The chart below provides more detail on the age at which you must start taking RMDs.

Data source: Internal Revenue Service.

The penalty for not completing the RMD on time is an additional 25% excise tax, meaning you would owe the IRS 25% of the amount not withdrawn (plus you would still need to take the full RMD). But the penalty can be reduced to 10% if the problem is corrected within two years.

The penalty can also be waived entirely if the shortfall was caused by a reasonable error and the problem is corrected quickly. To qualify, you must provide a statement of explanation about why the RMD was missed. That statement must be attached to a Form 5329 and submitted to the IRS along with your tax return.

How much is the RMD on a $600,000 retirement account?

Required minimum distribution amounts are calculated by dividing a life expectancy factor into the relevant account balance from Dec. 31 of the previous year. For instance, RMDs taken in 2026 will be based on account balances as of Dec. 31, 2025.

Individuals with multiple IRAs must calculate the RMD for each account separately, but the total sum can be withdrawn from one account. However, that rule does not extend to 401(k), 403(b), and profit-sharing plans. For those accounts, RMDs must be calculated and withdrawn separately.

The IRS publishes three life expectancy tables. Which table you use to calculate your RMD depends on the circumstances, as detailed below:

• Table I (Single Life Expectancy): Beneficiaries
• Table II (Joint and Last Survivor Life Expectancy): Account holders whose spouses are their sole beneficiary and are at least 10 years younger
• Table III (Uniform Lifetime): Account holders who either have multiple beneficiaries or a spouse who is not more than 10 years younger

Shown below is an abbreviated reproduction of Table III (Uniform Lifetime) from the IRS. Below the table are three example RMD calculations involving accounts with $600,000.

Data source: Internal Revenue Service. Uniform Lifetime Table.

Example 1: Jordan turns 73 in 2026 and has money in a traditional IRA. The balance was $600,000 as of Dec. 31, 2025. His 2026 RMD equals $600,000 divided by 26.5, which is $22,642. Jordan can delay the withdrawal until April 1, 2027, because this is his first RMD. But all future RMDs must be taken by Dec. 31 of the appropriate year.

Example 2: Jacquelin turns 74 in 2026 and has two traditional IRAs. The first IRA held $250,000 and the second IRA held $350,000 as of Dec. 31, 2025. The RMD on the first account is $9,804 (i.e., $250,000 divided by 25.5) and the RMD on the second account is $13,726 (i.e., $350,000 divided by 25.5). Jacquelin can take the entire RMD amount from a single account, or she can divide it between the two accounts.

Example 3: Julie turns 77 in 2026 and has a traditional IRA and a traditional 401(k). Both accounts had a balance of $300,000 on Dec. 31, 2025, so the 2026 RMD for both accounts is $13,101, (i.e., $300,000 divided by 22.9). Julie must withdraw that sum from both accounts individually. Unlike the previous example, the amounts cannot be combined and withdrawn from a single account.

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