Required minimum distribution FAQ

It depends. Recent changes in the tax law could affect when you must take an RMD from one of these retirement plans:

• Individual retirement accounts, or IRAs
• Simplified Employee Pensions, or SEP IRAs
• Tax-sheltered annuities, or TSAs
• Optional Retirement Plans, or ORPs
• State deferred compensation, or SDC
• Keogh and individual retirement rollovers

When you have one of these accounts, you must take an RMD no later than April 1 of the year after you turn 73 years old. Then you must take another RMD by the end of that year and those that follow.

For example, if you turn 73 in 2024, you must take your first RMD by April 1, 2025. Then you must take the RMD again that year — and each year after that — by Dec. 31.

RMDs apply to qualified retirement plans and 403(b) plans. If allowed under the terms of the plan, you may be able to postpone RMDs until you retire. Check with your plan administration for details.

If you miss a withdrawal or take out too little, the IRS may impose a 25% penalty tax on the amount you didn’t take.

For example, say your RMD is $10,000 for the year and you only take $5,000. The IRS may impose a penalty of $1,250 on the remaining $5,000, plus any other taxes due on the RMD.

According to IRS regulations, to calculate the RMD amount you divide your retirement plan balance from the end of the previous year by the life expectancy factor corresponding to your age.

You may get a lower amount if your spouse is your sole beneficiary and more than 10 years younger than you.

Yes. You can have your distribution deposited into the USAA account you choose at no charge.

The IRS usually requires you to calculate an RMD amount separately for each retirement plan you have. But you may add the amounts for similar plan types and withdraw the amount from any one or more of those plans.

For example, traditional, SEP and SIMPLE IRAs are similar plans. 403(b) and 403(b)(7) are similar plans. Keogh is a unique plan.

It can be. You’ll usually need to report certain distributions from your retirement plans as ordinary income. That income is subject to taxation.

Distributions from nondeductible IRA contributions and after-tax contributions aren’t taxable.

You’ll need to complete and sign Form W-4R (Opens in New Window). Then send it back to us online, or by mail or fax.

From usaa.com:

1. Log on and select the profile icon with your initials.
2. Select “Inbox.”
3. Select “Send documents to USAA.”
4. Select “Upload Documents.”
5. Select “Life & Health Insurance/Annuities.”
6. Select “Next.”
7. Follow the other instructions on the page.

From the USAA Mobile App:

1. Tap the profile icon with your initials.
2. If you have an Android, tap “Inbox.”
3. Tap “Send documents to USAA.”
4. Tap "Send other documents."
5. Follow the other instructions on the screen.

Mail to:

USAA Life Insurance Company

USAA Life Insurance Company of New York

9800 Fredericksburg Road

San Antonio, TX 78288

Fax to:

210-498-3243 in the U.S.

877-435-7099 outside the U.S.