Required Minimum Distributions (RMD) 2026: Rules and Calculations
Required Minimum Distributions (RMD) 2026: Rules and Calculations
Required minimum distributions are the IRS’s way of ensuring that tax-deferred retirement savings are eventually taxed. Once you reach a certain age, you must begin withdrawing a minimum amount from your pre-tax retirement accounts each year — and you must pay income tax on those withdrawals. Missing an RMD or withdrawing less than the required amount triggers one of the steepest penalties in the tax code.
Data Notice: Figures, rates, and statistics cited in this article are based on the most recent available data at time of writing and may reflect projections or prior-year figures. Always verify current numbers with official sources before making financial, medical, or educational decisions.
This guide covers everything you need to know about RMDs for 2026, including the current age threshold under SECURE 2.0, which accounts are subject to RMDs, how to calculate your required distribution, the reduced penalty structure, and strategies to minimize the tax impact of your mandatory withdrawals.
RMD Age Threshold: When Do You Have to Start?
The age at which required minimum distributions begin has changed multiple times in recent years:
| Legislation | RMD Starting Age | Effective |
|---|---|---|
| Pre-SECURE Act | 70 1/2 | Before 2020 |
| SECURE Act (2019) | 72 | 2020-2022 |
| SECURE 2.0 Act (2022) | 73 | 2023-2032 |
| SECURE 2.0 Act (2022) | 75 | 2033 and later |
For 2026: If you turn 73 in 2026, you must begin taking RMDs. Your first RMD is due by April 1 of the year following the year you turn 73 — which means April 1, 2027. All subsequent RMDs are due by December 31 of each year.
The First-Year Trap
If you delay your first RMD to April 1 of the following year, you must still take your second RMD by December 31 of that same year. This means two RMDs in one calendar year, which can push you into a significantly higher tax bracket.
Example: You turn 73 in 2026. You delay your first RMD to March 2027. You must also take your 2027 RMD by December 31, 2027. Both distributions are taxable income in 2027, potentially pushing you from the 22% bracket into the 24% or 32% bracket.
Recommendation: Take your first RMD in the year you turn 73, not the following year, to avoid the double-distribution problem.
Which Accounts Are Subject to RMDs?
Accounts That Require RMDs
- Traditional IRA
- SEP IRA
- SIMPLE IRA
- Traditional 401(k)
- 403(b)
- 457(b) (governmental)
- Inherited IRAs (special rules apply)
Accounts That Do NOT Require RMDs (During Owner’s Lifetime)
- Roth IRA — No RMDs during the owner’s lifetime. This is one of the most significant advantages of Roth accounts.
- Roth 401(k) — Starting in 2024, Roth 401(k) accounts are also exempt from RMDs during the owner’s lifetime, thanks to SECURE 2.0. Previously, Roth 401(k) accounts were subject to RMDs, which forced many people to roll their Roth 401(k) into a Roth IRA to avoid mandatory distributions.
- Health Savings Accounts (HSA) — Not subject to RMDs
The elimination of Roth 401(k) RMDs makes the Roth conversion ladder even more powerful, as converted funds in a Roth IRA will never be subject to forced distributions.
Still-Working Exception
If you are still working at age 73 and do not own more than 5% of the company, you can delay RMDs from your current employer’s 401(k) plan until you actually retire. This exception does not apply to IRAs or previous employers’ 401(k) plans — only the plan at your current employer.
How to Calculate Your RMD
The RMD calculation is straightforward:
RMD = Account balance as of December 31 of the prior year / Life expectancy factor from the IRS table
Step 1: Determine Your Account Balance
Use the fair market value of your retirement account(s) as of December 31 of the previous year. For 2026 RMDs, use the December 31, 2025 balance.
If you have multiple traditional IRAs, you calculate the RMD for each one separately but can take the total required amount from any one (or combination) of your traditional IRAs. However, 401(k) RMDs must be taken from each 401(k) plan individually — you cannot aggregate them.
Step 2: Find Your Life Expectancy Factor
Most people use the Uniform Lifetime Table, which is based on the joint life expectancy of you and a hypothetical beneficiary 10 years younger. This table applies regardless of your actual beneficiary’s age, unless your sole beneficiary is your spouse who is more than 10 years younger (in which case, use the Joint and Last Survivor Table for a lower RMD).
Uniform Lifetime Table (Selected Ages)
| Age | Life Expectancy Factor | Approximate RMD % |
|---|---|---|
| 73 | 26.5 | ~3.77% |
| 74 | 25.5 | ~3.92% |
| 75 | 24.6 | ~4.07% |
| 76 | 23.7 | ~4.22% |
| 77 | 22.9 | ~4.37% |
| 78 | 22.0 | ~4.55% |
| 79 | 21.1 | ~4.74% |
| 80 | 20.2 | ~4.95% |
| 85 | 16.0 | ~6.25% |
| 90 | 12.2 | ~8.20% |
| 95 | 8.9 | ~11.24% |
| 100 | 6.4 | ~15.63% |
The percentage grows each year as the life expectancy factor shrinks. By age 90, you must withdraw over 8% of your balance annually, and by 100, over 15%.
Step 3: Calculate
Example: You are 75 years old. Your traditional IRA balance on December 31, 2025 was ~$500,000.
- Life expectancy factor for age 75: 24.6
- RMD = ~$500,000 / 24.6 = ~$20,325
You must withdraw at least ~$20,325 from your traditional IRA during 2026. This amount is taxable as ordinary income.
Calculation for Multiple Accounts
| Account | Dec 31 Balance | Life Expectancy Factor | RMD |
|---|---|---|---|
| Traditional IRA #1 | ~$300,000 | 24.6 | ~$12,195 |
| Traditional IRA #2 | ~$200,000 | 24.6 | ~$8,130 |
| 401(k) from former employer | ~$150,000 | 24.6 | ~$6,098 |
| Total | ~$650,000 | ~$26,423 |
Remember: The two IRA RMDs (~$12,195 + ~$8,130 = $20,325) can be taken from either IRA or split between them. The 401(k) RMD ($6,098) must be taken from the 401(k) plan itself.
Penalties for Missing an RMD
Current Penalty Structure (SECURE 2.0)
SECURE 2.0 significantly reduced the penalty for missed RMDs:
| Situation | Penalty |
|---|---|
| Missed or insufficient RMD | 25% of the shortfall amount |
| Corrected within the IRS correction window (typically 2 years) | Reduced to 10% |
| Pre-SECURE 2.0 (for comparison) | 50% of the shortfall |
Example: Your 2026 RMD is ~$20,000 and you only withdraw ~$15,000. The shortfall is ~$5,000.
- Standard penalty: ~$5,000 x 25% = ~$1,250
- If corrected within the correction window: ~$5,000 x 10% = ~$500
How to Correct a Missed RMD
- Withdraw the missed amount as soon as you discover the error
- File IRS Form 5329 with your tax return
- Request a penalty waiver by attaching a letter of explanation to Form 5329, explaining reasonable cause (the IRS frequently waives penalties for first-time or good-faith errors)
- If corrected within approximately 2 tax years, the penalty is automatically reduced to 10%
Even with the reduced penalties, missing an RMD is costly. Set calendar reminders and consider automatic distributions from your retirement accounts.
Strategies to Minimize RMD Tax Impact
1. Start Roth Conversions Before Age 73
The single most effective RMD strategy is to reduce your pre-tax retirement balance before RMDs begin. By executing a Roth conversion ladder during low-income years (such as early retirement), you convert taxable traditional IRA funds to Roth at lower rates, permanently removing them from future RMD calculations.
2. Qualified Charitable Distributions (QCD)
If you are 70 1/2 or older, you can direct up to ~$105,000 per year (2025; adjusted for inflation) from your traditional IRA directly to a qualified charity. QCDs satisfy your RMD requirement without increasing your taxable income. This is one of the most tax-efficient ways to give to charity in retirement.
Key QCD rules:
- Must be transferred directly from IRA to charity (not withdrawn and then donated)
- Cannot go to donor-advised funds or private foundations
- Reduces your RMD requirement dollar-for-dollar
- Does not count as taxable income on your return
- Available starting at age 70 1/2, not age 73
3. Use the Still-Working Exception
If you are still employed at age 73 and own 5% or less of your company, delay RMDs from your current employer’s 401(k). Consider rolling old IRAs and previous 401(k) plans into your current employer’s plan (if the plan allows it) to shelter more funds from RMDs while you continue working.
4. Coordinate with Social Security Timing
RMD income can increase the taxation of your Social Security benefits. If you have not yet claimed Social Security, consider the interaction between RMD income and Social Security taxation thresholds. Delaying Social Security to age 70 while doing Roth conversions in your 60s can reduce the combined tax burden.
5. Spread Income Across Tax Brackets
Plan your total retirement income — RMDs, Social Security, pensions, and other sources — to stay within the most favorable tax brackets. If your RMD alone keeps you in the 22% bracket, taking additional discretionary withdrawals to fill the rest of the bracket (and converting to Roth) may reduce future RMDs and overall taxes.
6. Take Advantage of the Senior Tax Deduction
Taxpayers 65 and older receive an additional standard deduction amount, which helps offset RMD income. For 2026, the additional amount is projected at approximately ~$1,950 for single filers and ~$1,550 per spouse for married filers. See our guide on the $6,000 senior tax deduction for full details.
Inherited IRAs and RMDs
The SECURE Act of 2019 fundamentally changed RMD rules for inherited retirement accounts. The rules depend on your relationship to the original account owner.
Surviving Spouse
The surviving spouse has the most flexibility:
- Treat as own: Roll the inherited IRA into your own IRA and follow standard RMD rules based on your own age
- Remain as beneficiary: Take RMDs based on your own life expectancy using the Single Life Table
- Elect the 10-year rule: Empty the account within 10 years (no annual RMDs required)
Eligible Designated Beneficiaries
Certain non-spouse beneficiaries can stretch RMDs over their own life expectancy:
- Minor children of the deceased (until they reach majority, then the 10-year rule applies)
- Disabled or chronically ill individuals
- Beneficiaries not more than 10 years younger than the deceased
Most Other Beneficiaries (10-Year Rule)
Most non-spouse beneficiaries who inherited an IRA after 2019 must empty the entire account within 10 years of the original owner’s death. IRS guidance (proposed regulations) requires annual RMDs during those 10 years if the original owner had already begun taking RMDs.
RMD Planning Checklist for 2026
Use this checklist to ensure you stay compliant and tax-efficient:
- Confirm your December 31, 2025 balance for each retirement account
- Calculate your 2026 RMD using the Uniform Lifetime Table (or Joint Table if applicable)
- Decide whether to take your RMD early in the year or later
- Consider a Qualified Charitable Distribution if you are charitably inclined
- Evaluate Roth conversion opportunities for amounts above your RMD
- Check the impact of RMD income on your Social Security taxation
- Verify withholding or estimated tax payments cover the tax on your RMD — review IRS payment plans if needed
- Set calendar reminders for the December 31 deadline (or April 1 for first-year RMDs)
Frequently Asked Questions
Can I take more than my required minimum distribution?
Yes. The RMD is a floor, not a ceiling. You can withdraw as much as you want above the minimum. Some people withdraw more to fill lower tax brackets or fund Roth conversions. However, all withdrawals above the RMD from pre-tax accounts are still taxable as ordinary income.
Do I have to take an RMD from every account?
For IRAs, you calculate the RMD for each account individually but can take the total from any combination of your traditional IRAs. For 401(k) and 403(b) plans, the RMD must be taken from each plan separately. You cannot satisfy a 401(k) RMD with an IRA withdrawal.
What if my account lost value during the year?
Your RMD is based on the prior year’s December 31 balance, regardless of what happens to the account value during the current year. If your account drops significantly, you must still take the RMD based on the higher year-end balance. This is one reason why some advisors recommend taking RMDs early in the year.
Can I reinvest my RMD?
You can reinvest RMD funds into a taxable brokerage account after withdrawal. However, you cannot roll an RMD back into a tax-deferred or Roth account. The RMD is treated as an ineligible rollover distribution.
At what age do RMDs increase to 75?
Under SECURE 2.0, the RMD starting age increases to 75 for individuals who turn 74 after December 31, 2032. If you turn 73 in 2032 or earlier, your starting age is 73. This further delay provides additional years for Roth conversions and tax-free growth.
How do RMDs interact with the standard deduction?
RMD income is fully taxable as ordinary income but is offset by your standard deduction. For a single filer age 73+, the standard deduction plus the additional senior amount is approximately ~$17,300 (projected for 2026). Your first ~$17,300 of income, including RMDs, would effectively be tax-free.
Key Takeaways
- RMDs begin at age 73 under SECURE 2.0 (moving to 75 starting in 2033)
- Roth IRAs and Roth 401(k)s are exempt from RMDs during the owner’s lifetime
- The penalty for missed RMDs is 25%, reduced to 10% if corrected within approximately 2 years
- Your RMD is calculated by dividing the prior year’s December 31 balance by the IRS life expectancy factor
- Qualified Charitable Distributions (up to ~$105,000) can satisfy RMDs without increasing taxable income
- Pre-RMD Roth conversions are the most effective strategy for reducing future mandatory distributions
- The still-working exception allows you to delay RMDs from your current employer’s 401(k)
Next Steps
- Use the Roth conversion ladder strategy to reduce your pre-tax balance before RMDs begin
- Check the 2026 tax brackets to plan your withdrawal strategy
- Review Social Security taxation rules to understand how RMDs interact with benefit taxation
- Explore the senior tax deduction to maximize your standard deduction
- See our complete list of tax deductions for additional ways to offset RMD income
Tax information is for educational purposes only and does not constitute tax, investment, or financial advice. RMD rules are subject to legislative change. Consult a licensed tax professional or financial advisor for guidance specific to your situation.