At age 73, the IRS requires you to start withdrawing from most retirement accounts. These "Required Minimum Distributions" (RMDs) are taxed as ordinary income and missing one triggers a 25% penalty (reduced to 10% if corrected within 2 years).
This guide explains the 2026 RMD rules, including the latest SECURE 2.0 Act changes that pushed the starting age from 72 to 73 (and eventually 75).
🔑 Key RMD Rule Changes in 2026
- Starting age: 73 (was 72 before 2023)
- Future increase: Age 75 starting in 2033
- Penalty reduction: 25% → 10% if corrected within 2 years
- Roth 401(k) RMDs: Eliminated starting 2024
When Do RMDs Start? (Age 73, 75, or Later)
The age you must start RMDs depends on your birth year:
| Birth Year | RMD Starts At Age | First RMD Deadline |
|---|---|---|
| Before 1951 | 72 (already started) | April 1 after turning 72 |
| 1951–1959 | 73 | April 1 after turning 73 |
| 1960 or later | 75 (starting 2033) | April 1 after turning 75 |
Important: If you turn 73 in 2026, your first RMD can be delayed until April 1, 2027 — but then you'll have two RMDs in 2027 (the 2026 RMD + the 2027 RMD). Most taxpayers prefer taking the first RMD in the year they turn 73 to avoid doubling up.
Which Retirement Accounts Have RMDs?
✅ Has RMDs
- Traditional IRA
- SIMPLE IRA
- SEP IRA
- 401(k), 403(b), 457(b)
- Profit-sharing plans
❌ No RMDs
- Roth IRA (never)
- Roth 401(k) (starting 2024)
- Taxable brokerage accounts
- Health Savings Account (HSA)
Roth 401(k) note: Starting in 2024, Roth 401(k) accounts no longer have RMDs. This is a major SECURE 2.0 change that allows Roth 401(k) balances to grow tax-free indefinitely.
How to Calculate Your RMD (Step-by-Step)
The IRS formula is:
Step 1: Find Your Account Balance
Use the December 31 balance of the prior year. For your 2026 RMD, use your 12/31/2025 balance.
Step 2: Find Your Life Expectancy Factor
Use IRS Publication 590-B — specifically the Uniform Lifetime Table:
| Age | Life Expectancy Factor | Example: $500k Balance → RMD |
|---|---|---|
| 73 | 26.5 | $500,000 ÷ 26.5 = $18,868 |
| 75 | 24.6 | $500,000 ÷ 24.6 = $20,325 |
| 80 | 20.2 | $500,000 ÷ 20.2 = $24,752 |
| 85 | 16.0 | $500,000 ÷ 16.0 = $31,250 |
| 90 | 12.2 | $500,000 ÷ 12.2 = $40,984 |
| 95 | 9.1 | $500,000 ÷ 9.1 = $54,945 |
Observation: As you age, the life expectancy factor decreases, so your RMD percentage increases each year (from ~3.8% at age 73 to ~11% at age 95).
Penalty for Missing an RMD (25% → 10% if Corrected)
If you fail to withdraw your full RMD by the deadline:
- Standard penalty: 25% of the amount you failed to withdraw
- Reduced penalty: 10% if you correct the error and file Form 5329 within 2 years
Example: Your RMD is $20,000 but you withdraw nothing. Penalty = $20,000 × 25% = $5,000. If you correct within 2 years, penalty drops to $2,000.
5 Strategies to Reduce RMD Taxes
1. Roth Conversion Before Age 73
Convert traditional IRA funds to Roth before RMDs start. You pay taxes now at your current rate, but eliminate future RMDs entirely (Roth IRAs have no RMDs).
Best for: People who expect to be in a higher tax bracket later (due to RMDs + Social Security + pensions).
2. Qualified Charitable Distribution (QCD)
If you're 70½ or older, you can direct up to $108,000 per year (2026 limit) from your IRA to charity. The distribution:
- Counts toward your RMD
- Is not included in your taxable income
- Reduces your AGI (which can lower Medicare IRMAA surcharges)
3. Delay First RMD (Carefully)
You can delay your first RMD until April 1 of the following year. But as noted above, this causes two RMDs in one tax year — potentially pushing you into a higher bracket.
4. Work Longer (If Still Employed)
If you're still working at age 73 and not a 5% owner of the company, you can delay RMDs from your current employer's 401(k) until you retire. This is called the "still working" exception.
5. Consider Moving to a Low-Tax State
RMDs are taxed as ordinary income at the federal level regardless of where you live. But some states don't tax retirement income at all:
- No tax on retirement income: Florida, Texas, Nevada, Alaska, Washington, Wyoming, South Dakota, Tennessee, New Hampshire
- Partially tax-friendly: Pennsylvania (doesn't tax IRA/401k distributions)
Calculate Your Exact RMD with Our Free Calculator
Instead of using the IRS tables manually, use our RMD Calculator to:
- Enter your age and account balance
- Get your exact RMD for 2026
- See a year-by-year RMD projection through age 100
- Compare the tax impact of taking RMDs vs. doing Roth conversions
Frequently Asked Questions
Can I aggregate RMDs from multiple IRAs?
Yes. You can calculate the RMD for each IRA separately, but you can withdraw the total from any one (or more) of the IRAs. This is called "aggregation." However, 401(k) accounts cannot be aggregated with IRAs.
Do I need to take RMDs from my Roth IRA?
No. Roth IRAs never have RMDs during the owner's lifetime. This is a major advantage of Roth accounts.
What if I turn 73 in 2026? When is my first RMD due?
You have two options: (1) Take your first RMD by December 31, 2026, or (2) Delay until April 1, 2027. Option 2 causes two RMDs in 2027, which may push you into a higher tax bracket.
Are RMDs withheld for taxes?
You can choose to have federal (and state) tax withheld from your RMD, just like from a paycheck. The default is no withholding, but you're responsible for paying estimated taxes if you don't withhold.