At what age do Required Minimum Distributions start in 2026?

RMDs start at age 73 under the SECURE 2.0 Act. Your first RMD is due by April 1 of the year following the year you turn 73. After that, all subsequent RMDs are due by December 31 of each year. Note: if you delay your first RMD to April 1, you'll take two RMDs in that year (first RMD by April 1 + second RMD by December 31), which may push you into a higher tax bracket.

Which retirement accounts require RMDs?

RMDs apply to traditional IRAs, SEP IRAs, SIMPLE IRAs, 401k plans, 403b plans, and most other tax-deferred employer-sponsored retirement accounts. Roth IRAs are NOT subject to RMDs during the account owner's lifetime — a major reason Roth accounts are valuable in retirement. Roth 401k accounts were previously subject to RMDs but SECURE 2.0 eliminated that requirement starting in 2024.

What is the penalty for missing an RMD?

The penalty for failing to take a required RMD is 25% of the amount not withdrawn. If you correct the mistake within the 2-year correction window (known as the 'correction window'), the penalty drops to 10%. The IRS also has a process for waiving the penalty under certain circumstances. Missing an RMD is a serious — but correctable — mistake.

What is a Qualified Charitable Distribution (QCD) and how does it help with RMDs?

A QCD allows IRA owners aged 70½ or older to transfer up to $108,000 directly from their IRA to a qualified charity in 2026. The amount transferred counts toward your RMD for the year but is excluded from your taxable income — unlike a regular distribution that you'd then donate (which would be taxable income, with a deduction that may or may not fully offset it). For charitable retirees, QCDs are one of the most powerful and underused tax strategies available.

Should I do Roth conversions before age 73 to reduce future RMDs?

For many people, yes. Converting traditional IRA or 401k funds to Roth before your RMDs start reduces the balance subject to future RMDs, potentially saves taxes if your RMDs would push you into a higher bracket, and may help you stay below IRMAA thresholds for Medicare premiums. The best Roth conversion strategy typically fills your current tax bracket without crossing into the next one, and works best in the years between retirement and age 73.

Required Minimum Distributions: The Complete 2026 Guide

Age 73. The IRS comes for its share. Here's exactly what RMDs are, how to calculate them, what happens if you miss them, and the smartest strategies to manage the tax hit.

Affiliate Disclosure: This article contains an affiliate link to Empower. If you sign up through our link, we may earn a commission at no cost to you. We only recommend tools we genuinely stand behind. Try Empower free →

Financial Disclaimer: This article is for informational and educational purposes only. Nothing here constitutes personalized financial, tax, or retirement planning advice. RMD rules are complex and fact-specific. Consult a qualified tax professional or financial advisor before making decisions about RMDs, Roth conversions, or charitable distribution strategies.

For decades, you've been sheltering money from taxes in your traditional IRA and 401k. Contributions went in pre-tax. Growth compounded tax-deferred. It was a good deal.

But the IRS made that deal with conditions. Those deferred taxes don't disappear — they get collected. Starting at age 73, the government requires you to begin taking distributions from your tax-deferred accounts, whether you need the money or not. Those distributions are taxable income. That's the trade.

Understanding how Required Minimum Distributions work — and how to manage them intelligently — is one of the most important things you can do for your retirement tax picture.

What Are RMDs?

A Required Minimum Distribution (RMD) is a minimum amount you must withdraw each year from certain retirement accounts once you reach the required beginning date. The withdrawals are taxed as ordinary income (not capital gains rates).

The purpose is straightforward: the government gave you a tax deferral in exchange for eventually collecting taxes on that money. RMDs ensure those taxes get collected within your lifetime.

RMDs are NOT:

A suggestion. They're mandatory.
Limited to just your IRA. Multiple account types are affected.
Optional if you don't need the money. You must take them regardless.
Subject to capital gains rates. They're taxed as ordinary income.

Which Accounts Require RMDs?

Accounts subject to RMDs:

Traditional IRA
Rollover IRA
SEP IRA
SIMPLE IRA
401k (traditional)
403b
457b (governmental)
Most other tax-deferred employer-sponsored retirement plans

Accounts NOT subject to RMDs (owner's lifetime):

Roth IRA — No RMDs during the account owner's lifetime. This is a major advantage.
Roth 401k — SECURE 2.0 (effective 2024) eliminated RMDs from Roth 401k accounts. Previously, Roth 401ks were subject to RMDs even though Roth IRAs weren't.

One exception for still-working employees: If you're still employed at 73 and don't own more than 5% of the company, you may be able to delay RMDs from your current employer's 401k until you retire. IRAs and old 401k plans from previous employers are still subject to RMDs on the normal schedule.

When Do RMDs Start?

The RMD age is 73 in 2026, following changes under SECURE 2.0.

A brief history of the RMD age:

Before 2020: RMDs began at 70½
2020–2022: RMDs moved to age 72 (under original SECURE Act)
2023–present: RMDs moved to age 73 (SECURE 2.0)
2033 and beyond: RMD age rises to 75 (per SECURE 2.0 schedule)

If you were born between 1951 and 1959, your RMD age is 73. If you were born in 1960 or later, your RMD age will be 75.

The First RMD: Two Deadlines to Know

Your first RMD must be taken by April 1 of the year following the year you turn 73.

Every subsequent RMD is due by December 31 of each year.

The double-RMD trap: If you delay your first RMD to April 1, you take two RMDs in that calendar year — the first (by April 1) and the second (by December 31). Two RMDs in one year means more taxable income, which may push you into a higher bracket or trigger IRMAA surcharges on Medicare premiums.

For most people, it makes sense to take the first RMD in the year you turn 73 rather than pushing it to April 1 of the following year.

How to Calculate Your RMD

The IRS requires you to calculate each year's RMD separately for each account using a straightforward formula:

RMD = Account Balance ÷ Distribution Period

Where:

Account Balance = the fair market value of your account as of December 31 of the prior year
Distribution Period = a factor from the IRS Uniform Lifetime Table based on your age

IRS Uniform Lifetime Table (Selected Ages)

| Age | Distribution Period | |-----|-------------------| | 73 | 26.5 | | 74 | 25.5 | | 75 | 24.6 | | 76 | 23.7 | | 77 | 22.9 | | 78 | 22.0 | | 79 | 21.1 | | 80 | 20.2 | | 85 | 16.0 | | 90 | 12.2 | | 95 | 8.9 |

Example: You turn 73 in 2026. Your traditional IRA balance was $650,000 on December 31, 2025.

RMD = $650,000 ÷ 26.5 = $24,528

You must withdraw at least $24,528 from that IRA by December 31, 2026.

Multiple Accounts

If you have multiple IRAs (traditional, SEP, SIMPLE), you calculate each account's RMD separately but can aggregate them and take the total from any combination of those IRAs. You don't have to take a separate distribution from each one.

401k and 403b plans are different: each must have its own RMD taken from that specific plan. You can't aggregate them across plans.

The Penalty for Missing an RMD

This is where a lot of retirees get surprised.

Penalty: 25% of the amount not withdrawn.

If your RMD was $24,528 and you forgot to take it, the penalty is $6,132. Added to the taxes you'll owe when you eventually take it.

The good news: SECURE 2.0 reduced the penalty from 50% to 25%, and created a correction window.

Within 2 years of the missed RMD: If you correct the mistake (take the missed RMD), the penalty drops from 25% to 10%.
The IRS Self-Correction Program: The IRS will often waive the penalty entirely if the mistake was a reasonable error and you correct it promptly. File Form 5329 with the return, explain the error, and request a waiver.

Missed RMDs happen — especially in the first year, when people are unfamiliar with the rules. The key is to correct the mistake as quickly as possible.

RMD Strategies: Managing the Tax Hit

RMDs add taxable income each year. For large retirement accounts, that income can push you into higher brackets, increase taxation of Social Security benefits, and trigger IRMAA Medicare surcharges. Here are the main strategies to manage the damage.

1. Roth Conversions Before Age 73

This is the most powerful long-term strategy for reducing RMD burden.

The logic: money in a Roth IRA is not subject to RMDs. If you convert traditional IRA or 401k funds to Roth before your RMDs begin, you reduce the balance that will eventually be subject to mandatory withdrawals.

The sweet spot for Roth conversions: The years between retirement (when your income drops) and age 73 (when RMDs begin). If you retire at 65, you may have 8 years of relatively low income — a window to convert traditional funds to Roth at a lower tax rate than you'd pay during peak earning years or after RMDs force large distributions.

How to size conversions: Most advisors recommend converting up to the top of your current tax bracket — enough to make meaningful progress without pushing into the next bracket or triggering IRMAA.

One caution: Large Roth conversions create taxable income in the year of the conversion. That income feeds back into IRMAA calculations 2 years later. Time conversions carefully around Medicare premium thresholds.

2. Qualified Charitable Distributions (QCDs)

If you're 70½ or older and charitably inclined, a QCD is one of the most tax-efficient moves available.

A QCD allows you to transfer funds directly from your IRA to a qualified charity — up to $108,000 per person in 2026. The amount:

Counts toward your RMD for the year
Is excluded from your taxable income entirely
Cannot also be claimed as a charitable deduction (you're already getting the income exclusion)

Compared to the alternative: Taking the RMD as a distribution (taxable income), then donating the after-tax proceeds to charity and claiming a deduction — the deduction only helps if you itemize, and even then you're paying tax on the full distribution first. The QCD skips that taxable distribution entirely.

QCD requirements:

Must be 70½ or older (not 73 — you can start QCDs before RMDs begin)
Must go directly from the IRA custodian to the charity (no personal receipt of funds)
Charity must be a 501(c)(3) eligible to receive tax-deductible contributions
Does not apply to SEP or SIMPLE IRAs with ongoing contributions
Cannot exceed $108,000 per person per year (2026)

For retirees who donate regularly to charity and have large traditional IRAs, a QCD strategy can save thousands per year in federal income taxes.

3. Aggregate RMDs Strategically Across IRAs

If you have multiple IRAs, remember you can aggregate the total RMD across accounts and take it from whichever IRA(s) you choose. This allows you to take RMDs from accounts you want to wind down first — for example, an IRA with less desirable investments — while preserving an IRA with preferred holdings.

4. Don't Reinvest RMDs Into Tax-Deferred Accounts

You cannot reinvest an RMD back into the same IRA. But you can invest RMD proceeds in a taxable brokerage account, a Roth IRA (if you have earned income and meet income limits), or use them for current expenses.

Some retirees who don't need the income reinvest RMDs into a taxable account and purchase broadly diversified index funds. Over time, this taxable account benefits from step-up in basis at death — a tax advantage for heirs.

Tracking All Your RMDs in One Place

If you have multiple retirement accounts across multiple institutions, keeping track of RMD calculations, deadlines, and totals is genuinely complex. One missed account means a missed RMD and a potential penalty.

Empower aggregates all your retirement accounts into a single dashboard, makes it easy to see total balances at year-end (the basis for next year's RMD calculation), and provides net worth and income projections that account for RMD income. Connect all your accounts free →

For the actual RMD calculation, the valueofstock.com/calculator can help you model the numbers across different balance and age scenarios.

RMD Planning by the Numbers

Here's how RMD income stacks up at different portfolio sizes (age 73, using 26.5 distribution period):

| Traditional IRA Balance | Annual RMD | |------------------------|-----------| | $250,000 | $9,434 | | $500,000 | $18,868 | | $750,000 | $28,302 | | $1,000,000 | $37,736 | | $1,500,000 | $56,604 | | $2,000,000 | $75,472 |

As the distribution period shortens over time, the RMD as a percentage of the balance increases. At 80, the distribution period is 20.2 — meaning roughly 5% of your balance must be distributed each year.

For large traditional IRAs, RMDs can become substantial income — potentially pushing into higher brackets and affecting Social Security taxation, Medicare premiums, and other income-related thresholds.

Free Resource: Retirement Readiness Kit

The Poor Man's Stocks Retirement Readiness Kit on Gumroad includes an RMD calculation worksheet, QCD planning template, and Roth conversion timing guide — designed for retirees and near-retirees navigating the RMD landscape. Get it here →

The Bottom Line on RMDs

RMDs are mandatory, predictable, and entirely plannable.

The worst thing you can do is ignore them until they hit — discovering at 73 that a large traditional IRA generates more taxable income than you expected, potentially pushing you into higher brackets, triggering IRMAA surcharges, and affecting your Social Security taxation.

The best thing you can do is start planning early:

Before 73: Use the Roth conversion window strategically to reduce the taxable balance
At 70½+: Consider QCDs for any charitable giving — far more efficient than taking the RMD and donating
After 73: Manage RMD timing, size, and destination thoughtfully each year

The tax deferral was always a loan from the IRS, not a forgiveness. Understanding the repayment schedule is just good financial hygiene.

Required Minimum Distributions (RMDs): The Complete 2026 Guide