One of the first things we do when a new client sits down with us at our Sun City West office is ask them to walk us through their retirement accounts — all of them. What consistently surprises people is how many they have, and how little coordination exists between them. An IRA here, an old 401(k) from a job left years ago, maybe a SEP IRA from a period of self-employment, perhaps a 403(b) from a career in education or healthcare. Each account feels manageable on its own. Together, they can create a complicated RMD picture that no one has ever mapped out as a whole.
The accounts that generally require RMDs
The IRS requires minimum distributions from most tax-deferred retirement accounts — meaning any account where money went in before taxes, or grew without being taxed along the way. That includes traditional IRAs, SEP IRAs, SIMPLE IRAs, 401(k)s, 403(b)s, profit-sharing plans, and certain 457(b) plans. Once you reach the required age, those accounts generally cannot stay untouched. A minimum amount must come out each year, and that withdrawal is typically taxable income.
IRAs: the most common starting point
Traditional IRAs are the most frequently affected account, and they show up in nearly every retirement review we conduct in the 85375 community. SEP and SIMPLE IRAs are common among retirees who owned a business or worked independently — a profile that describes a significant portion of Sun City West residents who spent their careers as entrepreneurs, contractors, or self-employed professionals. These accounts were powerful savings tools during working years, but they generally carry the same RMD requirements as a traditional IRA, regardless of whether you actually need the income they produce.
Workplace plans have their own timing rules
401(k)s, 403(b)s, and other employer-sponsored plans also require RMDs, but the timing can differ from IRAs in ways that matter. If you are still working and your current employer’s plan allows it, RMDs from that specific account may be delayed until you actually retire. Old plans from former employers typically follow the standard timeline. And certain business owners may have special rules that apply to their situation. The point is that you cannot assume every account follows the same schedule — an IRA and a 401(k) from a former employer may have different deadlines, and treating them identically is a common and avoidable mistake.
What about Roth accounts?
Roth IRAs are the notable exception. The IRS does not require Roth IRA owners to take RMDs during their lifetime, which makes them a meaningful planning tool for both tax management and legacy purposes. That said, Roth accounts held inside workplace plans and inherited Roth accounts can involve different rules, so it is worth reviewing the specifics rather than assuming all Roth-labeled accounts work the same way.
The accounts that get forgotten are often the ones that cause problems
The pattern we see most often at our Sun City West office involves accounts that were simply never brought into the retirement plan as a whole — an old 401(k) that was never rolled over, a small IRA opened at a bank years ago and rarely reviewed, a SEP IRA with a balance that has grown quietly for decades. Each of those accounts may carry its own RMD requirement, its own deadline, and often outdated beneficiary designations that no longer reflect the owner’s wishes. Before age 73, the most valuable thing a retiree in the 85375 area can do is take a complete inventory, understand the timeline for each account, and make sure everything is working as a coordinated plan rather than a collection of separate pieces.
Schedule your RMD check-up today: https://rmd73.com | 623-777-7463
One location. One visit. Your one-stop retirement shop in Sun City West, AZ 85375.
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Prime Wealth Advisors — One location. One visit. Your one-stop retirement shop in Sun City West, AZ 85375.