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Next Gen Econ > Personal Finance > Retirement > What Is the RMD for a 401(K) If You Still Work?
Retirement

What Is the RMD for a 401(K) If You Still Work?

NGEC By NGEC Last updated: June 4, 2025 6 Min Read
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Retirement accounts like 401(k)s come with specific rules. One of the most important, required minimum distributions (RMDs), dictate when you must start withdrawing money. But when you reach the age typically associated with these mandatory withdrawals, what happens if you still work? The RMD for a 401(k) follows different guidelines for those who work than it does for retirees.

A financial advisor can provide additional insights into retirement plans and the strategies that best fit your long-term goals.

How RMD Rules Work for a 401(k)

RMDs are mandatory withdrawals that retirement account owners must take from their tax-advantaged retirement accounts, including 401(k)s. These distributions typically begin when you reach age 73 (as of 2023). However, this age is subject to change due to legislative updates. The IRS requires these withdrawals to ensure retirement funds don’t remain tax-deferred indefinitely.

To calculate your RMD amount, divide your 401(k) account balance as of December 31 of the previous year by a life expectancy factor provided by the IRS. These factors, found in IRS Publication 590-B, decrease as you age. This results in larger required withdrawals over time. Each 401(k) plan requires its own separate RMD calculation.

For most 401(k) owners, the first RMD occurs April 1 of the year following the year you turn 73. Subsequent RMDs must be taken by December 31 of each year. Be careful with your first distribution. Delaying it until April means you’ll need to take two distributions in the same tax year. This could potentially push you into a higher tax bracket.