Required Minimum Distributions in 2026: RMD Rules, Age Changes, and How to Calculate

Required minimum distributions are the IRS's mechanism for ensuring that tax-deferred retirement savings eventually get taxed. Money that grew in a traditional IRA or 401k without being taxed cannot stay there indefinitely. Once you reach a certain age, the government requires you to begin withdrawing a minimum amount each year, paying ordinary income tax on those withdrawals. The SECURE Act 2.0, passed in late 2022, changed the age at which RMDs begin and modified several other rules, making this a period when many retirees need to recalibrate their understanding of the requirements.

The New RMD Starting Age Under SECURE 2.0

The original SECURE Act raised the RMD starting age from 70.5 to 72. SECURE 2.0 raised it again, to 73 for people born between 1951 and 1959, and to 75 for people born in 1960 or later. If you turned 72 before January 1, 2023, you were already subject to RMDs under the old rules and the new age thresholds do not change your situation. If you turned 72 in 2023 or later, the new higher ages apply to you.

The first year you are required to take an RMD, you have until April 1 of the following year to take it. Every year after the first, you must take the distribution by December 31. Taking two distributions in the same calendar year, which happens when you delay the first-year distribution to April of the second year, can increase your taxable income significantly and push you into a higher bracket. Many financial advisors recommend taking the first RMD by December 31 of the year you turn 73 (or 75) rather than waiting until April to avoid the two-distribution problem.

Which Accounts Require RMDs

Traditional IRAs, SEP-IRAs, SIMPLE IRAs, traditional 401k plans, 403b plans, 457b plans, and most other tax-deferred retirement accounts are subject to RMDs. Roth IRAs are not subject to RMDs during the account owner's lifetime, which is one of the significant advantages of Roth accounts. If you own a Roth 401k (a designated Roth account in a workplace plan), SECURE 2.0 eliminated the RMD requirement for those accounts starting in 2024.

If you are still working and participating in your employer's 401k plan at the time you reach RMD age, you may be able to delay RMDs from that specific plan until you retire. This exception applies only to the current employer's plan, not to IRAs or plans from former employers. Whether your plan allows the still-working exception depends on the plan document. Most plans offer this option but some do not, so checking with your plan administrator is necessary.

How to Calculate Your Annual RMD

The RMD formula divides your account balance as of December 31 of the prior year by a life expectancy factor from the IRS Uniform Lifetime Table. The life expectancy factor decreases each year as you age, which means the percentage of your account you must withdraw increases gradually over time. At age 73, the factor is approximately 26.5, meaning you divide your balance by 26.5 to get your RMD. At age 80, the factor drops to about 20.2. At age 90, it is around 12.2.

If your spouse is the sole beneficiary of your IRA and is more than 10 years younger than you, you use the Joint Life and Last Survivor Expectancy Table instead of the Uniform Lifetime Table. The joint table produces a larger divisor, which means a smaller required distribution, because it accounts for a longer combined life expectancy. If you have multiple IRAs, you calculate the RMD for each separately but can withdraw the total from any combination of those IRAs. For 401k accounts, you must take the RMD from each plan separately.

Inherited IRA RMD Rules After SECURE Act

The rules for inherited IRAs changed dramatically under the original SECURE Act and have continued to evolve. Before the SECURE Act, most non-spouse beneficiaries could stretch distributions from an inherited IRA over their own life expectancy. The SECURE Act eliminated the stretch IRA for most non-spouse beneficiaries, replacing it with a ten-year rule requiring the account to be fully distributed within ten years of the original owner's death.

Whether annual distributions are required within the ten-year period depends on whether the original account owner had already reached their required beginning date when they died. If they had started taking RMDs, beneficiaries must also take annual distributions each year within the ten-year window in addition to emptying the account by year ten. If the original owner died before their required beginning date, beneficiaries simply need to empty the account within ten years with no annual distribution requirement. Eligible designated beneficiaries, which include surviving spouses, disabled individuals, chronically ill individuals, individuals not more than ten years younger than the deceased, and minor children of the deceased, can still use the old stretch rules.

Penalties for Missing an RMD and How to Fix It

The penalty for failing to take a required minimum distribution was historically 50% of the amount not withdrawn. SECURE 2.0 reduced this to 25%, and further to 10% if the missed RMD is corrected within two years through a correction window. While reduced, these penalties are still substantial. On a $20,000 missed RMD, the 25% penalty is $5,000, reduced to $2,000 if corrected within the correction window.

If you missed an RMD, you can request a penalty waiver by filing IRS Form 5329 and attaching a letter of explanation. The IRS has historically been fairly willing to waive the penalty for first-time mistakes when the taxpayer takes the distribution promptly after discovering the error. This forgiveness is not guaranteed and becomes less likely for repeated failures. Setting up automatic annual distributions from your IRA that meet or exceed the RMD amount is the most reliable way to avoid missing a distribution. Use our retirement calculator to model your RMD amounts over time, and see our guide to how much to save for retirement to plan around these required withdrawals.