Required Minimum Distributions Explained: Rules, Ages, and Penalties (2026)
Required Minimum Distributions (RMDs) are mandatory annual withdrawals the IRS requires from most retirement accounts starting at age 73. The amount is calculated by dividing your account balance by a life expectancy factor from IRS tables. Miss your RMD and you pay a 25% excise tax on the undistributed amount. Every dollar withdrawn is taxed as ordinary income — whether you need the money or not. Here is everything you need to know about how RMDs work, which accounts they apply to, and how to manage them.
What Is a Required Minimum Distribution?
When you contribute to a traditional IRA or 401(k), you defer paying income tax on that money — the IRS lets it grow untaxed for decades. RMDs are how the IRS eventually collects that deferred tax. Starting at age 73, you must withdraw a minimum amount each year from most retirement accounts, paying ordinary income tax on every dollar.
RMDs exist because tax-advantaged retirement accounts were designed for retirement income — not for indefinite wealth accumulation or estate planning. The government allowed the tax deferral with the expectation that the money would eventually be spent and taxed. RMDs enforce that expectation.
The practical effect: Even if you don't need the money, don't want to sell investments, and would prefer to let your account keep growing — the IRS requires a minimum distribution annually. The amount grows as a percentage of your account over time, and the income counts toward your taxes, Social Security taxation thresholds, and Medicare premium calculations.
See how RMDs fit your retirement income plan: Use our free retirement budget calculator to model RMD income alongside your other retirement income sources.
Which Accounts Require RMDs?
Not all retirement accounts have RMD requirements. Here's the complete breakdown:
Accounts subject to RMDs
| Account type | RMD required? | Notes |
|---|---|---|
| Traditional IRA | Yes | Starting at 73 |
| Rollover IRA | Yes | Treated same as traditional IRA |
| SEP IRA | Yes | Self-employed retirement account |
| SIMPLE IRA | Yes | After 2-year waiting period from first contribution |
| Traditional 401(k) | Yes | Starting at 73; still-working exception may apply |
| Traditional 403(b) | Yes | Common for educators and nonprofits |
| Traditional 457(b) | Yes | Government employee plans |
| Profit-sharing plans | Yes | |
| Defined benefit plans (pensions) | Technically yes | Typically satisfied by the pension payment itself |
Accounts NOT subject to RMDs (owner's lifetime)
| Account type | RMD required? | Notes |
|---|---|---|
| Roth IRA | No | Never — the most significant RMD advantage |
| Roth 401(k) | No | SECURE 2.0 eliminated Roth 401(k) RMDs starting 2024 |
| Roth 403(b) | No | Same SECURE 2.0 change |
| Health Savings Account (HSA) | No | No RMDs at any age |
| 529 college savings plan | No |
The critical distinction: Roth IRAs have no RMDs during your lifetime. This is one of the most valuable features of Roth accounts — money can compound tax-free indefinitely without forced distributions. Inherited Roth IRAs do have distribution requirements for most beneficiaries, covered below.
What Age Do RMDs Start?
The RMD starting age has changed multiple times under recent legislation. Here's where it stands in 2026:
| Birth year | RMD starting age | First RMD deadline |
|---|---|---|
| Born before 1951 | 70½ (old law) | Already in RMD phase |
| Born 1951–1959 | 73 | April 1 of the year after turning 73 |
| Born 1960 or later | 75 | April 1 of the year after turning 75 |
The SECURE 2.0 Act (2022) raised the RMD age from 72 to 73 for those born in 1951–1959, and to 75 for those born in 1960 or later. This change gives younger retirees additional years of tax-deferred growth and more time for Roth conversions before RMDs begin.
Practical implication for 2026:
- Someone born in 1953 (turning 73 in 2026) must take their first RMD by December 31, 2026 (or April 1, 2027 — see deadline rules below)
- Someone born in 1960 (turning 66 in 2026) doesn't face RMDs until age 75 — giving them nearly a decade of additional tax-deferred growth and Roth conversion opportunity
How RMDs Are Calculated
The RMD formula is straightforward:
RMD = Prior year-end account balance ÷ Life expectancy factor
You use the account balance as of December 31 of the previous year — not the current balance. The life expectancy factor comes from the IRS Uniform Lifetime Table (Table III), which applies to most account owners.
2026 RMD examples using the Uniform Lifetime Table:
| Age | Life expectancy factor | RMD on $500,000 | RMD on $1,000,000 |
|---|---|---|---|
| 73 | 26.5 | $18,868 | $37,736 |
| 74 | 25.5 | $19,608 | $39,216 |
| 75 | 24.6 | $20,325 | $40,650 |
| 76 | 23.7 | $21,097 | $42,194 |
| 78 | 22.0 | $22,727 | $45,455 |
| 80 | 20.2 | $24,752 | $49,505 |
| 82 | 18.5 | $27,027 | $54,054 |
| 85 | 16.0 | $31,250 | $62,500 |
| 88 | 13.7 | $36,496 | $72,993 |
| 90 | 12.2 | $40,984 | $81,967 |
| 95 | 8.9 | $56,180 | $112,360 |
Notice the pattern: as you age, the life expectancy factor decreases and RMDs increase as a percentage of the account — even as the balance itself may be declining. By 90, you're withdrawing over 8% of the account annually.
The Joint Life Table (Table II): If your sole beneficiary is a spouse more than 10 years younger than you, you can use the Joint and Last Survivor Table instead of the Uniform Lifetime Table. The joint table produces lower RMDs because it accounts for two potentially long lifespans — a meaningful reduction for couples with large age gaps.
For the complete step-by-step RMD calculation with worked examples, see: how to calculate your RMD.
RMD Deadlines: When You Must Withdraw
The standard deadline: December 31 of each year.
The first-year exception: In your first RMD year, you have until April 1 of the following year to take the distribution. This is a one-time grace period.
The April 1 trap: If you delay your first RMD to April 1 of the following year, you must also take your second RMD by December 31 of that same year. Taking two RMDs in one calendar year doubles your taxable income for that year — potentially pushing you into a higher bracket and making more of your Social Security taxable.
The general recommendation: Take your first RMD in the same calendar year you turn 73 (or 75) rather than deferring to April 1. The tax cost of two RMDs in one year usually exceeds any benefit from the brief additional deferral.
Multiple IRAs: If you have multiple traditional IRAs, you must calculate your RMD separately for each account — but you can take the total from any one IRA or any combination. This aggregation flexibility lets you choose which IRA to draw from based on investment considerations.
Multiple 401(k)s: Unlike IRAs, each 401(k) must satisfy its own RMD independently. You cannot use a withdrawal from one 401(k) to satisfy another plan's RMD. This is a key reason to consolidate old 401(k)s into a single IRA upon retirement.
The Penalty for Missing an RMD
Failing to take your full RMD by the deadline carries a significant excise tax:
Standard penalty: 25% of the amount not withdrawn.
Reduced penalty: 10% if the shortfall is corrected within the "Correction Window" — which is the earlier of (a) two years from the missed RMD, or (b) the date the IRS sends a notice of deficiency or assessment.
Example: Required RMD: $30,000 Amount actually withdrawn: $10,000 Shortfall: $20,000
Standard penalty: $20,000 × 25% = $5,000 excise tax Corrected within 2 years: $20,000 × 10% = $2,000 excise tax
Additionally, you still owe ordinary income tax on the full RMD amount you were required to take — the penalty is on top of the income tax, not in place of it.
IRS waiver: The IRS has historically been willing to waive RMD penalties for first-time or reasonable-cause errors, particularly if you take corrective action promptly and file Form 5329 with an explanation. However, this waiver is discretionary — the safest approach is simply to take RMDs on time.
SECURE 2.0 reduced the penalty from 50% to 25% — a meaningful change from prior law. The reduced penalty (with the correction window reduction to 10%) reflects a recognition that RMD rules are complex and mistakes are common, particularly in the first year.
RMDs from Inherited IRAs: The SECURE Act Rules
Inherited IRA RMD rules are substantially different from rules for your own accounts — and they changed dramatically under the SECURE Act (2019) and SECURE 2.0 (2022).
If you inherited an IRA before January 1, 2020 (pre-SECURE Act)
You could stretch distributions over your own life expectancy — the "stretch IRA" strategy that allowed decades of continued tax-deferred growth.
If you inherited an IRA on or after January 1, 2020 (SECURE Act rules)
Eligible Designated Beneficiaries (EDBs) — can still use the stretch rule:
- Surviving spouse
- Minor children of the deceased (until reaching majority, then 10-year rule applies)
- Disabled or chronically ill individuals
- Beneficiaries not more than 10 years younger than the deceased
Non-Eligible Designated Beneficiaries (most adult children and other heirs): Must deplete the inherited account within 10 years of the original owner's death. The SECURE Act eliminated the stretch IRA for most non-spouse beneficiaries.
Additionally, if the original owner died after their required beginning date (meaning they had already started taking RMDs), the beneficiary must take annual distributions during the 10-year period — not just deplete the account by year 10.
If the original owner died before their required beginning date, the beneficiary has more flexibility — they can take any amount in any pattern during the 10 years, as long as the account is empty by the end of year 10.
Surviving spouse options
A surviving spouse has the most flexibility:
- Treat as their own IRA: Roll the inherited IRA into their own IRA and apply normal RMD rules (starting at 73/75). This is usually the best option for younger surviving spouses.
- Remain as inherited IRA: Allows access before 59½ without the 10% early withdrawal penalty — useful for younger surviving spouses who need income before 59½.
- Elect 10-year rule: Available but rarely advantageous for spouses compared to the other options.
Inherited Roth IRA rules
Non-spouse beneficiaries of inherited Roth IRAs still face the 10-year withdrawal requirement — but all withdrawals are completely tax-free. This makes inherited Roth IRAs significantly more valuable than inherited traditional IRAs for most beneficiaries.
Roth IRA RMD Rules: The Exception
Roth IRA owners: No RMDs during your lifetime — ever. Your Roth IRA can grow tax-free indefinitely without forced distributions. This is the clearest financial advantage of Roth accounts for those who don't need the money.
Roth 401(k) owners: Starting in 2024 (SECURE 2.0), Roth 401(k) accounts also have no RMDs during the owner's lifetime — eliminating a previous disadvantage vs. Roth IRAs.
Inherited Roth IRAs: Non-spouse beneficiaries must follow the 10-year distribution rule — but all distributions remain tax-free.
For the complete Roth vs. traditional comparison including RMD differences, see: Roth IRA vs traditional IRA: which saves you more in taxes.
How RMDs Affect Your Taxes
Every dollar of RMD is taxable as ordinary income in the year you take it. This has cascading effects beyond just paying income tax on the distribution itself:
Social Security taxation: RMD income increases your adjusted gross income, which increases combined income — potentially pushing more of your Social Security benefits into taxable territory. Above $32,000 combined income for married couples, up to 85% of Social Security becomes taxable. Each dollar of RMD can effectively generate $1.85 of taxable income when combined with SS taxation.
IRMAA Medicare surcharges: RMD income counts toward MAGI for Medicare IRMAA premium calculations (based on income from two years prior). Large RMDs can push you above IRMAA thresholds, adding $74–$438/month per person in Medicare Part B premium surcharges two years later.
State income taxes: Most states tax RMD income as ordinary income, though many have partial or full exemptions for retirement income. See: best states to retire for taxes.
Net Investment Income Tax (NIIT): RMD income can affect the 3.8% NIIT threshold ($200,000 single/$250,000 married), potentially increasing the tax on investment income in high-income years.
SECURE Act 2.0: Key RMD Changes
The SECURE 2.0 Act, signed into law in December 2022, made several significant changes to RMD rules:
| Change | Old rule | New rule (2026) |
|---|---|---|
| RMD starting age | 72 | 73 (born 1951–1959); 75 (born 1960+) |
| Roth 401(k) RMDs | Required during owner's lifetime | Eliminated — no RMDs during owner's lifetime |
| Penalty for missed RMD | 50% of shortfall | 25% (10% if corrected within 2 years) |
| Surviving spouse option | Limited | Can now elect to be treated as deceased spouse for RMD purposes |
| QCD limit | $100,000/year | $105,000/year (indexed for inflation from 2024) |
| QLAC limit | $145,000 or 25% of balance | $200,000 (indexed for inflation) |
| First RMD year | Year you turn 72 | Year you turn 73 (or 75 for born 1960+) |
These changes collectively give retirees more time for tax planning, more Roth conversion opportunities, and lower penalties for mistakes — a broadly taxpayer-friendly set of reforms.
Strategies to Manage RMDs
Understanding RMD rules is step one. Managing them strategically is where the real financial planning begins.
Roth conversions before RMDs begin: The most powerful long-term strategy. Converting traditional IRA money to Roth before 73 reduces the balance subject to RMDs — every dollar converted means a smaller required distribution for the rest of your life. See the full strategy: how to reduce taxes on required minimum distributions.
Qualified Charitable Distributions (QCDs): If you're 70½ or older, direct up to $105,000/year from your IRA to a qualified charity as a QCD. The distribution satisfies your RMD but is excluded from taxable income — the most tax-efficient charitable giving strategy available to retirees.
Aggregate IRAs for withdrawal flexibility: Calculate RMDs for each IRA separately but take the total from any IRA. This lets you choose which investments to sell based on portfolio management needs rather than arbitrary account-by-account requirements.
Avoid the April 1 deferral trap: Take your first RMD in the calendar year you turn 73 (or 75) to avoid doubling up RMD income in the following year.
Reinvest excess RMDs: If you don't need the full RMD for living expenses, invest the after-tax proceeds in a taxable brokerage account. The compounding continues — just in a taxable rather than tax-deferred wrapper.
Consider a QLAC: A Qualified Longevity Annuity Contract removes up to $200,000 from RMD calculations until payments begin (typically at 80–85), reducing annual mandatory distributions while providing guaranteed late-life income.
For comprehensive RMD strategy, see: RMD strategies: how to minimize the tax hit.
RMD Planning and Your Retirement Budget
RMDs create a floor of taxable income in retirement that you must plan around — not just for taxes, but for your overall monthly cash flow. For many retirees, RMDs produce more income than they actually need, creating a tax bill on money they didn't choose to spend.
Understanding your projected RMD amounts at 73, 75, 80, and 85 — and how those amounts interact with your Social Security income, IRMAA thresholds, and bracket boundaries — is essential for realistic retirement income planning.
Our free retirement budget calculator helps you build a complete retirement income picture — Social Security, portfolio withdrawals, pension, and RMDs — against your actual monthly expenses, so you can see exactly where you stand.
Related guides:
- How to calculate your RMD: step-by-step with examples
- RMD strategies: how to minimize the tax hit
- How to reduce taxes on required minimum distributions
- How are 401(k) withdrawals taxed in retirement
Frequently Asked Questions
What is a Required Minimum Distribution?
A Required Minimum Distribution (RMD) is a mandatory annual withdrawal the IRS requires from most tax-deferred retirement accounts — traditional IRAs, 401(k)s, 403(b)s, and similar plans — starting at age 73 (or 75 for those born in 1960 or later). The minimum amount is calculated by dividing the prior year-end account balance by a life expectancy factor from IRS tables. Every dollar withdrawn is taxed as ordinary income.
At what age do RMDs start in 2026?
Under SECURE 2.0, RMDs start at age 73 for those born between 1951 and 1959, and at age 75 for those born in 1960 or later. If you were born before 1951, you are already in your RMD phase under prior rules.
What happens if I don't take my RMD?
Failing to take your full RMD by December 31 (or April 1 for your first RMD) triggers an excise tax of 25% of the undistributed amount — reduced to 10% if you correct the shortfall within two years. You also still owe ordinary income tax on the full required amount. The penalty is significant — always take RMDs on time.
Which retirement accounts are exempt from RMDs?
Roth IRAs have no RMDs during the owner's lifetime. Roth 401(k)s are also now exempt from RMDs (SECURE 2.0, effective 2024). HSAs have no RMDs at any age. All traditional (pre-tax) retirement accounts — traditional IRAs, 401(k)s, 403(b)s, 457(b)s, SEP IRAs, SIMPLE IRAs — are subject to RMDs starting at 73 or 75.
How are RMDs calculated?
RMD = Account balance on December 31 of the prior year ÷ Life expectancy factor from the IRS Uniform Lifetime Table. For example, a 73-year-old with a $600,000 IRA balance divides $600,000 by 26.5 = $22,642 RMD. The life expectancy factor decreases each year, meaning RMDs increase as a percentage of the account over time. For the complete step-by-step calculation, see: how to calculate your RMD.
Do RMDs affect Social Security benefits?
RMDs don't reduce your Social Security benefit amount. However, RMD income increases your adjusted gross income, which can make more of your Social Security benefits taxable. Above $32,000 in combined income (married filing jointly), up to 85% of Social Security becomes subject to ordinary income tax. Large RMDs can push more SS income into taxable territory, effectively increasing your total tax bill beyond the RMD income alone.
Can I take more than my RMD?
Yes — the RMD is a minimum, not a maximum. You can withdraw any amount above your RMD. However, all withdrawals from traditional accounts are taxed as ordinary income, so taking significantly more than your RMD increases your tax bill without being required. In some cases — Roth conversion years, tax bracket filling strategies — taking more than the RMD is part of a deliberate tax planning strategy.
Are inherited IRAs subject to RMDs?
Yes — inherited IRAs have their own distribution requirements. For most non-spouse beneficiaries who inherited after January 1, 2020 (SECURE Act), the entire inherited account must be depleted within 10 years. If the original owner had already started taking RMDs, beneficiaries must also take annual distributions during the 10-year period. Surviving spouses have more flexible options, including treating the inherited IRA as their own. Inherited Roth IRAs face the same 10-year rule but all distributions are tax-free.
The Bottom Line
Required Minimum Distributions are one of the most significant tax events in retirement — mandatory, growing, and interacting with nearly every other aspect of your retirement tax picture. The key facts every retiree should know:
- RMDs start at 73 (most people) or 75 (born 1960 or later) under SECURE 2.0
- Traditional IRAs, 401(k)s, and most pre-tax accounts are subject to RMDs; Roth IRAs and HSAs are not
- The formula: prior year-end balance ÷ IRS life expectancy factor
- The penalty for missing an RMD: 25% of the undistributed amount (10% if corrected within 2 years)
- Every dollar is taxable as ordinary income, affecting Social Security taxation, IRMAA, and bracket calculations
- The best RMD tax strategies: Roth conversions before 73, QCDs for charitable retirees, and careful bracket management
The earlier you understand and plan for RMDs, the more strategies you have available. Waiting until 73 to think about RMDs means relying primarily on QCDs and bracket management. Planning in your 60s opens the full playbook — including the most powerful strategy of all: reducing the traditional account balance through Roth conversions before RMDs begin.
Use our free retirement budget calculator to model how RMDs fit into your complete retirement income picture.
Last updated: May 2026. This article is for educational purposes and does not constitute personalized financial advice. Consult a licensed financial advisor or CPA for guidance specific to your situation.