Financial Disclaimer: This article is for informational and educational purposes only. It does not constitute personalized financial, investment, legal, or tax advice. Consult a qualified financial professional before making any financial decisions. Past performance does not guarantee future results.

Required Minimum Distributions: RMD Rules for 2026

Required minimum distributions force you to withdraw and pay taxes on a portion of your Traditional IRA, 401(k), and other tax-deferred accounts starting at age 73. Missing an RMD triggers a 25% excise tax on the shortfall (reduced to 10% if corrected within two years). The rules were significantly updated by the SECURE 2.0 Act, and understanding them is essential for tax-efficient retirement planning.

2026 RMD Rules at a Glance

Rule	2026 Status
RMD starting age	73 (born 1951-1959); will rise to 75 in 2033 (born 1960+)
First RMD deadline	April 1 of the year after you turn 73
Subsequent RMDs	December 31 of each year
Penalty for missed RMD	25% excise tax (10% if corrected within 2 years)
Roth IRA RMDs	None during owner’s lifetime
Roth 401(k) RMDs	None (eliminated by SECURE 2.0 starting 2024)

Source: IRS RMD FAQ, IRS Publication 590-B

How RMDs Are Calculated

The IRS calculation is straightforward:

RMD = Account balance (Dec 31 of prior year) / Life expectancy factor

The life expectancy factor comes from the IRS Uniform Lifetime Table (Table III in Publication 590-B). Example factors for selected ages:

Age	Uniform Table Factor	RMD % of Balance
73	26.5	~3.77%
75	24.6	~4.07%
78	22.0	~4.55%
80	20.2	~4.95%
85	16.0	~6.25%
90	12.2	~8.20%

Example: If your Traditional IRA balance is $500,000 on December 31, 2025, and you turn 73 in 2026, your 2026 RMD is $500,000 / 26.5 = $18,868.

Accounts Subject to RMDs

Account Type	RMDs Required?	Notes
Traditional IRA	Yes	Starting at 73
Traditional 401(k)	Yes	Unless still working for plan sponsor
403(b)	Yes	Same as 401(k)
SEP IRA	Yes	Same as Traditional IRA
SIMPLE IRA	Yes	Same as Traditional IRA
Roth IRA	No	No RMDs during your lifetime
Roth 401(k)	No	SECURE 2.0 eliminated RMDs starting 2024
Inherited IRAs	Yes	10-year rule for most non-spouse beneficiaries

Still working exception: If you are still employed and participating in your employer’s 401(k), you can delay RMDs from that specific plan until you retire. This does not apply to IRAs or 401(k)s from previous employers.

The First-Year RMD Trap

Your first RMD can be delayed until April 1 of the year after you turn 73. However, if you delay, you must take two RMDs in that second year — the delayed first-year RMD by April 1 and the second-year RMD by December 31.

Example: You turn 73 in 2026. You can delay your 2026 RMD until April 1, 2027. But you must also take your 2027 RMD by December 31, 2027. Two RMDs in one tax year can push you into a higher tax bracket.

Recommendation: Unless you have a specific tax reason to delay, take your first RMD in the year you turn 73 to avoid the double-RMD year.

RMD Strategies to Minimize Taxes

Pre-RMD Roth Conversions

The most powerful RMD reduction strategy happens before age 73. In the years between retirement and RMD age, convert Traditional IRA/401(k) assets to Roth. Every dollar converted reduces future RMDs and the associated tax. See Roth Conversion Ladder: Strategy and Tax Math.

Qualified Charitable Distributions (QCDs)

If you are 70½ or older, you can direct up to $105,000 per year from your IRA directly to a qualifying charity. QCDs count toward your RMD but are excluded from taxable income. This is the most tax-efficient way to give to charity in retirement.

Aggregate RMDs Strategically

If you have multiple Traditional IRAs, you can calculate the total RMD across all accounts but withdraw it from a single IRA. This gives you flexibility to withdraw from the account with the worst-performing investments or the one best suited for rebalancing.

Note: 401(k) RMDs must be taken from each plan separately — they cannot be aggregated across accounts.

Reinvest in a Taxable Account

If you do not need the RMD for living expenses, reinvest it in a taxable brokerage account using tax-efficient index funds. This preserves the growth potential while satisfying the distribution requirement.

Impact of RMDs on Other Taxes

RMDs increase your adjusted gross income, which can:

Push Social Security benefits into taxable territory (up to 85% taxable above $44,000 combined income MFJ)
Increase Medicare Part B and D premiums through IRMAA surcharges (income above $106,000 single / $212,000 MFJ)
Reduce eligibility for certain tax deductions and credits
Trigger the 3.8% net investment income tax if total income exceeds $250,000 MFJ

Planning your retirement tax bracket with RMDs in mind is essential for minimizing these cascading effects.

Key Takeaways

RMDs begin at age 73 (75 for those born 1960+); missing them triggers a 25% penalty
Roth IRAs and Roth 401(k)s have no RMDs during your lifetime
Avoid the double-RMD trap by taking your first distribution in the year you turn 73
Pre-RMD Roth conversions are the most effective strategy to reduce future RMDs and associated taxes
Qualified charitable distributions (up to $105,000/year) satisfy RMDs tax-free
RMDs can increase Social Security taxes, Medicare premiums, and overall tax burden

Next Steps

Read Retirement Planning in Your 60s for the full transition strategy
Explore Retirement Tax Planning for withdrawal optimization
Return to the retirement planning by decade roadmap

This content is for educational purposes only and does not constitute financial advice. Consult a licensed financial professional for your specific situation.