Put your RMD on autopilot

Let us manage your RMD—from the calculation to the distribution. Once you sign up for the service, we’ll calculate the amount you need to withdraw and automatically distribute your assets each year.

We’ll use your retirement account balance as of December 31 of the previous year to calculate your distribution amount on an annual basis. Then we’ll distribute your assets the way you want. You can choose to reinvest them in a nonretirement account at Vanguard or we can deposit them directly into your bank account.

Set up the service

If you’re age 69½ or older, you can enroll in Vanguard’s RMD Service online:

  1. Log on to your Vanguard account.
  2. From the menu, choose My Accounts and select Retirement contributions, distributions & RMDs.
  3. Under Required minimum distribution (RMD), select Set up automatic distributions.
  4. Choose the service option you want us to apply to your RMD amount each year.

Quick facts about RMDs:

  • Once you’re age 70½, you have to withdraw a minimum amount from all of your IRAs and retirement plans (except Roth IRAs) each year.
  • You have to take your first RMD by April 1 of the year following the year you reach age 70½.
  • You have to take subsequent RMDs by December 31.
  • If you withdraw less than your RMD amount, you may owe a 50% penalty tax on the amount you don’t withdraw.
  • You have to pay ordinary income taxes on the taxable portion you withdraw.


Note:

All investing is subject to risk, including the possible loss of the money you invest.