Required Minimum Distribution (RMD) Full Rules After Age 72

After decades of saving in tax-deferred retirement accounts, the IRS eventually requires you to start withdrawing that money — and paying taxes on it. This mandatory withdrawal is called a Required Minimum Distribution, or RMD. Understanding RMD rules is essential for every retiree with Traditional IRAs, 401(k)s, 403(b)s, or other qualified retirement plans. Getting RMDs wrong can trigger some of the steepest penalties in the tax code. This guide covers everything you need to know about RMDs under current 2026 rules, from when they begin to how they are calculated.

What Are Required Minimum Distributions (RMDs)?

RMDs are mandatory annual withdrawals that the IRS requires from tax-deferred retirement accounts once you reach a certain age. The policy rationale is straightforward: the government allowed you decades of tax-deferred growth, and now it wants its tax revenue. RMDs ensure that retirement account balances are eventually distributed and taxed as ordinary income rather than being passed entirely to heirs without taxation.

RMDs apply to Traditional IRAs, SEP IRAs, SIMPLE IRAs, 401(k) plans, 403(b) plans, 457(b) plans, profit-sharing plans, and other defined contribution plans. Critically, Roth IRAs are exempt from RMDs during the original owner's lifetime. As of 2024, Roth 401(k) and Roth 403(b) accounts are also exempt from lifetime RMDs under the SECURE 2.0 Act.

When Do RMDs Begin? Understanding the Age Rules

The required beginning date (RBD) for RMDs has changed multiple times through recent legislation. Under current law as of 2026:

• Age 73: If you were born between 1951 and 1959, your first RMD is due by April 1 of the year after you turn 73. This applies to most current and near-future retirees.
• Age 75: Under SECURE 2.0, the RMD age increases to 75 starting in 2033, applying to individuals born in 1960 or later.

For the first RMD year only, you have a special grace period: you can delay the withdrawal until April 1 of the following year. However, if you defer your first RMD, you must take two RMDs in that second year — one for the prior year and one for the current year — which could push you into a higher tax bracket. Most retirees take their first RMD in the year they turn 73 to avoid this double-distribution scenario.

Understanding the Uniform Lifetime Table

The IRS provides three life expectancy tables for RMD calculations. The most commonly used is the Uniform Lifetime Table, which applies to most account owners who are not married to a spouse more than 10 years younger. This table assigns a distribution period (divisor) based on your age, reflecting your remaining life expectancy.

Here are the key divisors from the updated Uniform Lifetime Table (effective 2022):

If the sole beneficiary of your account is your spouse and they are more than 10 years younger than you, you may use the Joint Life and Last Survivor Expectancy Table instead, which produces smaller RMDs.

How to Calculate Your RMD

The RMD formula is simple: divide your prior year-end account balance by the IRS distribution period divisor for your age.

RMD = Account Balance (as of December 31 of prior year) ÷ IRS Life Expectancy Divisor

Example: If you turn 73 in 2026 and your Traditional IRA balance was $500,000 on December 31, 2025, your RMD for 2026 is:

$500,000 ÷ 26.5 = $18,867.92

Note that you use the prior year's ending balance, not the current year's. Even if the market drops significantly during the year, the RMD is still based on the December 31 balance from the year before.

Year-by-Year RMD Projection: Ages 73–78

To illustrate how RMDs grow over time, consider a 73-year-old retiree named David with a $500,000 Traditional IRA invested in a balanced portfolio earning a hypothetical 6% average annual return. The table below shows his projected RMDs from ages 73 through 78, assuming he takes each year's RMD at year-end and the remaining balance continues growing:

Two patterns emerge clearly from this projection. First, the percentage of the account that must be withdrawn increases every year because the divisor shrinks faster than the balance grows. By age 78, David must withdraw 4.55% of his portfolio compared to 3.77% at age 73. Second, despite the growing withdrawals, the account balance continues to grow through the early retirement years — so RMDs do not necessarily deplete the portfolio immediately.

RMD Penalties: The 25% Excise Tax

Before the SECURE 2.0 Act of 2022, the penalty for failing to take an RMD was a punitive 50% excise tax on the amount not withdrawn. SECURE 2.0 reduced this penalty significantly:

• 25% penalty: The standard penalty on any RMD shortfall.
• 10% penalty: Available if you correct the error and withdraw the missed amount within a two-year correction window (the correction must occur before the IRS sends a notice of deficiency).
• Full waiver: The IRS may waive the penalty entirely if you can demonstrate that the shortfall was due to reasonable error and that you are taking steps to remedy it.

To report and pay an RMD penalty, you must file IRS Form 5329 (Additional Taxes on Qualified Plans) with your tax return. If requesting a waiver, attach a letter of explanation detailing the reasonable cause for the missed distribution.

Roth Accounts and RMDs: What You Need to Know

The RMD rules for Roth accounts have evolved significantly, and the distinctions are important:

Roth IRA — Lifetime: Roth IRAs have never been subject to RMDs during the original owner's lifetime. You can leave the entire balance untouched for as long as you live, making Roth IRAs an excellent tool for legacy planning.

Roth 401(k) and Roth 403(b) — Lifetime: Before 2024, Roth accounts within employer plans were subject to RMDs, unlike Roth IRAs. This created a strong incentive to roll Roth 401(k) balances into a Roth IRA before RMD age. However, SECURE 2.0 eliminated this disparity: starting in 2024, Roth 401(k) and Roth 403(b) accounts are also exempt from lifetime RMDs.

Inherited Roth Accounts: Both inherited Roth IRAs and inherited Roth 401(k)s are subject to distribution rules, though the distributions themselves remain tax-free. Non-spouse beneficiaries generally must fully distribute the account within 10 years of the original owner's death under the SECURE Act's 10-year rule.

Advanced RMD Considerations

Qualified Charitable Distributions (QCDs)

If you are age 70½ or older, you can direct up to $105,000 per year (2026 limit, indexed for inflation) from your IRA directly to a qualified charity. QCDs count toward your RMD but are excluded from your taxable income. This is a powerful strategy for charitably inclined retirees who do not need their full RMD for living expenses.

Still Working at RMD Age

If you are still employed at age 73 and do not own 5% or more of the company, you may be able to delay RMDs from your current employer's 401(k) until you actually retire. This is called the "still-working exception." It does not apply to IRAs or to plans from former employers — those RMDs must begin on schedule regardless of employment status.

Aggregation Rules

RMDs for Traditional IRAs can be aggregated: calculate the total RMD across all your IRAs and withdraw it from whichever account or combination of accounts you prefer. However, RMDs for 401(k) and 403(b) plans cannot be aggregated across plans — each plan's RMD must be withdrawn separately from that specific plan.