What Are Required Minimum Distributions (RMDs)?
Required Minimum Distributions are mandatory annual withdrawals the IRS requires you to take from tax-deferred retirement accounts — including Traditional IRAs, 401(k)s, 403(b)s, and SEP IRAs — once you reach a certain age. The purpose is to ensure the government eventually collects taxes on the money that has been growing tax-deferred.
Under the SECURE 2.0 Act, the RMD starting age increased to 73 (effective January 1, 2023). Previously, RMDs began at age 72. If you turn 73 in 2026, your first RMD must be taken by April 1, 2027, and your second by December 31, 2027.
How Is the RMD Calculated?
Your RMD for each year is calculated using this formula:
For example, if your Traditional IRA balance was $500,000 on December 31, 2025, and you turn 73 in 2026 (divisor = 26.5):
2026 RMD Distribution Period Table (Selected Ages)
| Age | Distribution Period | Approx. % of Balance |
|---|---|---|
| 73 | 26.5 | 3.77% |
| 75 | 24.6 | 4.07% |
| 80 | 20.2 | 4.95% |
| 85 | 16.0 | 6.25% |
| 90 | 12.2 | 8.20% |
Penalties for Missing an RMD
Under SECURE 2.0, the penalty for failing to take a full RMD is 25% of the shortfall (reduced from the previous 50%). If you correct the missed RMD within two years, the penalty drops to 10%. You must also withdraw the missed amount.
Roth Accounts and RMDs
Roth IRAs do NOT have RMDs during the owner's lifetime. However, Roth 401(k)s do require RMDs. You can avoid this by rolling your Roth 401(k) into a Roth IRA before reaching RMD age.
Related Calculators & Guides
- Roth Conversion Calculator — Reduce future RMDs with a conversion ladder
- Early Withdrawal Calculator — Penalties for pre-59½ withdrawals
- RMD Rules After Age 72 — Complete Guide
- Roth Conversion Strategy for High Income Earners
- All Retirement Calculators