Turning 73? Here’s What You Need to Know About Required Minimum Distributions (RMDs)

July 3, 2026

As you celebrate your 73rd birthday, there’s more to look forward to than cake, family gatherings, and another trip around the sun. Reaching age 73 also marks an important milestone in retirement planning: the beginning of Required Minimum Distributions (RMDs) for many retirement accounts.

While RMDs may sound like just another IRS rule to navigate, they can also serve as an opportunity to revisit your retirement income strategy and ensure your financial plan continues to support your goals.

What Are Required Minimum Distributions?

A Required Minimum Distribution (RMD) is the minimum amount the IRS generally requires you to withdraw annually from certain tax-deferred retirement accounts once you reach age 73Accounts commonly subject to RMDs include:

  • Traditional IRAs
  • SEP IRAs
  • SIMPLE IRAs
  • 401(k) plans
  • 403(b) plans
  • Other employer-sponsored defined contribution plans

The purpose of RMDs is straightforward: these accounts have benefited from years of tax-deferred growth, and the IRS eventually requires distributions so those funds can become taxable income.

Why Age 73 Matters

For many retirees, age 73 is when RMDs begin. Missing an RMD or failing to withdraw the correct amount can result in significant penalties, making it important to understand your obligations and plan accordingly.

RMDs and Your Retirement Strategy

Rather than viewing RMDs as simply a tax requirement, consider them an opportunity to evaluate:

  • Your current income needs
  • Tax-efficient withdrawal strategies
  • Charitable giving opportunities
  • Estate planning objectives
  • Long-term investment allocation

The amount you withdraw can affect your overall tax picture, Medicare premiums, and other aspects of your financial life. That’s why coordinating your RMD strategy with your broader retirement plan is often beneficial.

Can You Still Contribute to an IRA?

Many people are surprised to learn that age alone does not prevent contributions to a Traditional IRA.

If you have earned income and meet IRS eligibility requirements, you may still be able to contribute to a Traditional IRA beyond age 70½. Whether those contributions are deductible depends on your specific circumstances.

Avoid Common RMD Mistakes

Some common pitfalls include:

  • Forgetting to take the distribution
  • Miscalculating the required amount
  • Overlooking retirement accounts held at previous employers
  • Failing to coordinate distributions with tax planning

A proactive approach can help minimize surprises and keep your retirement strategy aligned with your objectives.

Celebrate the Milestone—And Plan for the Future

Turning 73 is a significant achievement and a reminder of the importance of thoughtful financial planning. Whether you’re taking your first RMD or have questions about how distributions fit into your overall retirement income strategy, having professional guidance can help bring clarity and confidence.

Here’s to another year of wisdom, opportunity, and financial confidence.

Disclosures

This material is for informational purposes only and is not intended as investment, tax, or legal advice. Individuals should consult their own financial professional, tax advisor, or attorney regarding their specific situation. There can be no guarantee that any strategy will be successful or achieve its intended results. Results will vary, and engaging with a Financial Advisor does not eliminate financial risk, including possible loss of principal.

Withdrawals from traditional IRAs, 401(k)s, and other tax-deferred retirement accounts are generally taxed as ordinary income. Failure to take required minimum distributions may result in IRS penalties. Eligibility to contribute to retirement accounts is subject to IRS rules and income requirements.

Aston Crest Wealth Management is a registered investment adviser. Advisory services are offered only to clients or prospective clients where the firm and its representatives are properly licensed or exempt from licensure. Nothing in this material should be construed as a solicitation or offer to buy or sell any security.