RMD Rules 2026: What Every Retiree Needs to Know

What Is a Required Minimum Distribution (RMD)?

A Required Minimum Distribution (RMD) is the minimum annual withdrawal amount that the IRS requires traditional retirement account owners to take once they reach age 73 (or 72 for older cohorts), calculated based on account balance and life expectancy factors³.

A Required Minimum Distribution is the minimum amount you must withdraw from your traditional retirement accounts each year once you reach a certain age. The IRS requires these withdrawals because the money in traditional IRAs, 401(k)s, and similar accounts has never been taxed — and the government wants its share.

Think of it this way: the IRS gave you a tax break when you contributed to your retirement account. An RMD is how they collect on that deal.

Updated for 2026 tax season, these rules affect millions of retirees with traditional retirement accounts.

At What Age Must I Start Taking RMDs in 2026?

Updated for 2026 tax season — the RMD starting age depends on when you were born, thanks to the SECURE 2.0 Act⁴:

Important: Your first RMD is due by April 1 of the year after you turn 73. Every subsequent RMD is due by December 31 of each year.

Warning: If you delay your first RMD to April 1, you will need to take two RMDs in that calendar year — which could push you into a higher tax bracket.

Which Accounts Require RMDs?

RMDs apply to these account types:

• Traditional IRA
• SEP IRA
• SIMPLE IRA
• 401(k) and 403(b) (unless still working for that employer)
• 457(b) government plans
• Inherited IRAs (special rules apply)

Accounts That Do NOT Require RMDs

• Roth IRA — As of 2024, original Roth IRA owners are permanently exempt from RMDs (thanks to SECURE 2.0 Act)²
• Roth 401(k) — Starting in 2024, Roth 401(k) accounts are also exempt from RMDs
• Health Savings Accounts (HSAs)

How to Calculate Your 2026 RMD

The formula is straightforward:

RMD = Account Balance (Dec 31 of prior year) ÷ Life Expectancy Factor

Here is how to do it step by step:

1. Find your account balance as of December 31, 2025
2. Look up your life expectancy factor in the IRS Uniform Lifetime Table (Table III in IRS Publication 590-B)⁵
3. Divide the balance by the factor

The Uniform Lifetime Table is an IRS-developed table providing life expectancy factors used to calculate RMD amounts for most account owners⁵.

Example (For Illustration Purposes Only)

For illustration purposes only, assume Maria is 75 years old with a traditional IRA balance of approximately $500,000 (based on typical IRA balances for retirees aged 75). The Uniform Lifetime Table shows a factor of 24.6 for age 75.

Maria's 2026 RMD = $500,000 ÷ 24.6 = $20,325

Maria must withdraw at least $20,325 from her IRA during 2026 to avoid penalties.

What Happens If You Miss an RMD?

The penalty for missing or under-withdrawing an RMD has been significantly reduced under the SECURE 2.0 Act⁴. Under the new rules, the penalty is 25% of the shortfall (or 10% if corrected within two years)¹:

Example: If your RMD was $20,000 and you only withdrew $15,000, the shortfall is $5,000. Under the new rules, the penalty is $1,250 (25%) — or just $500 (10%) if you correct it within the IRS correction window.

5 Strategies to Reduce Your RMD Tax Burden

1. Qualified Charitable Distributions (QCDs)

A Qualified Charitable Distribution (QCD) is a direct transfer of funds from an IRA to a qualified charity, which counts toward the RMD but is excluded from taxable income⁶.

If you are 70½ or older, you can donate up to $105,000 per year directly from your IRA to a qualified charity⁶. This counts toward your RMD but is not included in your taxable income.

2. Roth Conversions Before RMDs Begin

Converting traditional IRA funds to a Roth IRA before age 73 reduces the balance subject to future RMDs. You pay taxes on the conversion now, but the money grows tax-free in the Roth.

3. Aggregate Across IRAs

If you have multiple traditional IRAs, you can calculate the total RMD across all accounts but withdraw from whichever account you choose. This gives you flexibility to withdraw from lower-performing investments.

4. Consider the "Still Working" Exception

If you are still employed and participating in your employer's 401(k), you may delay RMDs from that specific plan until you retire. This does not apply to IRAs or plans from former employers.

5. Reinvest in a Taxable Account

If you do not need the RMD for living expenses, reinvest it in a taxable brokerage account. You still owe income tax on the withdrawal, but the money can continue to grow.

Key Deadlines for 2026

Updated for 2026 tax season — here are the critical dates you need to know:

Next Steps: Use the IRS Uniform Lifetime Table to estimate your 2026 RMD, or consult with a Certified Financial Planner™ or CPA to create a personalized withdrawal strategy that minimizes your tax burden. Don't wait until December — calculate your RMD early in the year to avoid penalties and plan your cash flow.

This article was last updated on March 31, 2026. Tax rules change frequently. Always verify current figures with the IRS or a qualified tax professional.