Key Takeaways

• RMDs start at age 73 in 2026 (SECURE Act 2.0 raised it from 72)
• Failure to take your RMD results in a 25% excise tax on the amount you should have withdrawn (reduced to 10% if corrected within 2 years)
• Roth IRAs have no RMDs during your lifetime — Roth 401(k)s are now also RMD-free (SECURE Act 2.0)
• RMD amount = account balance ÷ IRS life expectancy factor (from Uniform Lifetime Table)
• You can take more than the minimum — but you can’t take less without penalty

Table of Contents

1. [What Are RMDs and Who Must Take Them?](#what- are- rmds- and- who- must- take- them?)
2. [2026 RMD Age Rules](#2026- rmd- age- rules)
3. [How to Calculate Your 2026 RMD](#how- to- calculate- your- 2026- rmd)
4. [RMD Strategies to Minimize Taxes](#rmd- strategies- to- minimize- taxes)

What Are RMDs and Who Must Take Them?

Required Minimum Distributions are mandatory annual withdrawals from tax-deferred retirement accounts. The IRS requires them because these accounts grew tax-deferred — the government eventually wants to collect taxes on the money.

Accounts subject to RMDs:

• Traditional IRAs
• 401(k), 403(b), 457(b) plans (even at former employers)
• SEP IRAs
• SIMPLE IRAs

Accounts NOT subject to RMDs:

• Roth IRAs (during your lifetime)
• Roth 401(k)s (as of SECURE Act 2.0, effective 2024)
• Health Savings Accounts (HSAs)

2026 RMD Age Rules

If you turned 73 in 2026, your first RMD deadline is April 1, 2027. All subsequent RMDs are due December 31 of each year. Taking two RMDs in the same year (first + second due Dec 31) can spike your taxable income — consider starting RMDs in the calendar year you turn 73 to spread them out.

How to Calculate Your 2026 RMD

Formula: Account Balance (December 31, 2025) ÷ IRS Distribution Period Factor

Find your distribution period factor in the IRS Uniform Lifetime Table (IRS Publication 590-B). For most account holders:

If your sole beneficiary is a spouse more than 10 years younger, use the Joint Life Expectancy Table — which has larger factors and smaller required distributions.

RMD Strategies to Minimize Taxes

1. Qualified Charitable Distribution (QCD) If you’re 70½ or older, you can donate up to $105,000 directly from your IRA to a charity — this counts toward your RMD but is excluded from your taxable income. A QCD is one of the most powerful tax strategies for charitably inclined retirees.

2. Roth Conversions Before RMD Age Convert traditional IRA funds to Roth IRA during the years between retirement and age 73. Reduces future RMD amounts and eliminates RMDs on converted amounts.

3. Aggregate RMDs If you have multiple traditional IRAs, you can aggregate the RMDs from all of them but take the total from any one or combination of your IRAs. You cannot aggregate 401(k) RMDs — each must be taken separately.

4. Work and Delay 401(k) RMDs If you’re still working at 73 and own less than 5% of the company sponsoring your 401(k), you may delay RMDs from that specific current employer’s 401(k) until you retire.

FAQ

What if I missed an RMD?

The penalty is 25% of the amount you should have withdrawn — but it drops to 10% if you correct the shortfall within 2 years. File IRS Form 5329 and request a penalty waiver (the IRS routinely grants first-time waivers for taxpayers with reasonable cause). Fix it promptly rather than hoping the IRS won’t notice.

Do I have to take an RMD from an inherited IRA?

Yes — inherited IRA rules changed significantly under SECURE Act. Most non-spouse beneficiaries must now withdraw the entire account within 10 years of the original owner’s death. In years 2024 and beyond, RMDs may be required annually within that 10-year period. Spousal beneficiaries have more flexibility — they can treat the IRA as their own.

Related Articles:

• Best Retirement Accounts 2026
• 401(k) vs. Roth IRA 2026
• When to Claim Social Security
• Capital Gains Tax 2026

Source: IRS Publication 590-B; SECURE Act 2.0. Last verified: March 2026.

Your 2026 Retirement Planning Checklist

☐ Contributing at least enough to 401(k) to capture full employer match
☐ Roth IRA funded for 2026 ($7,000 by April 15, 2027)
☐ HSA maxed if enrolled in HDHP health plan
☐ Beneficiary designations reviewed on all retirement accounts
☐ Social Security statement reviewed at SSA.gov (create account if you haven’t)
☐ Target retirement age and savings goal documented
☐ Investment allocation appropriate for years until retirement
☐ No high-interest debt consuming retirement-bound cash flow

The most impactful action for late starters: If you’re over 50, the super catch-up contribution for ages 60–63 allows $34,750 into a 401(k) annually — more than any time in history. If you’re in that window, use every dollar of it.

Sources

1. Social Security Administration. Retirement Benefits. SSA.gov.
2. IRS. Retirement Plan Contribution Limits 2026. IRS.gov.
3. Vanguard. How America Saves 2025. Vanguard.com.
4. Fidelity. Retirement Savings by Age. Fidelity.com.

Source: SSA.gov; IRS.gov. Last verified: March 2026.

Quick Reference Summary

This article covers everything you need to know about required minimum distributions. Here are the most actionable steps:

Immediate actions (do this week):

• Review your current situation against the benchmarks and recommendations above
• Identify the single highest-impact change you can make based on this information
• Set a calendar reminder to reassess in 90 days

Medium-term actions (this month):

• Open any recommended accounts or start any applications referenced
• Set up automatic contributions, payments, or transfers to remove manual friction
• Research any state-specific programs or variations that apply to your location

Resources to bookmark:

• IRS.gov — official source for all tax figures and rules
• SSA.gov — Social Security benefits, statements, and applications
• Benefits.gov — federal benefits eligibility screening
• FDIC.gov — bank safety verification and deposit insurance information
• Consumer Financial Protection Bureau (consumerfinance.gov) — consumer rights and complaint filing

When to seek professional help: Complex situations — significant investment decisions, business ownership, estate planning, tax situations involving multiple states or foreign income — benefit from a fee-only financial planner (NAPFA.org), CPA, or estate attorney. The cost of professional advice on complex matters is almost always far less than the cost of getting them wrong.

The information in this guide reflects verified data as of March 2026. Financial rules, rates, and regulations change — always verify current figures from official sources before making significant financial decisions.

This article is for informational purposes only and does not constitute financial, tax, or legal advice. Consult qualified professionals for advice tailored to your specific situation.

10 Most Asked Retirement Questions in 2026

1. How much do I need to retire? 25× your annual retirement spending (the “Rule of 25” from the 4% withdrawal rate research). Someone spending $60,000/year needs $1.5M.

2. When can I withdraw from my 401(k)? Without penalty: age 59½. With penalty: 10% early withdrawal tax plus income taxes. Exceptions: disability, substantially equal periodic payments (72(t)), first-time home purchase (IRA only).

3. Can I retire early? Yes — with enough saved and a plan for healthcare before Medicare at 65. The FIRE community has demonstrated this is achievable at various income levels.

4. What’s the best retirement account? For most employees: 401(k) to match → Roth IRA → HSA → additional 401(k). For self-employed: Solo 401(k) or SEP IRA.

5. When should I start taking Social Security? Delaying to 70 maximizes your monthly benefit (8%/year increase past FRA). If you expect to live past age 80, delaying almost always wins mathematically.

6. What is Required Minimum Distribution? Mandatory annual withdrawals from traditional IRAs and 401(k)s starting at age 73. Failure to take them triggers a 25% penalty on the missed amount.

7. How does a 401(k) match work? Your employer contributes additional money based on your contribution. Common: 50 cents per dollar on the first 6% you contribute = 3% free contribution from your employer.

8. Should I roll over my old 401(k)? Usually yes — roll to an IRA for more investment options and lower fees, or to your new employer’s plan for simplicity. Never cash out (triggers taxes and penalties).

9. Is a pension better than a 401(k)? Pensions provide guaranteed income for life — valuable. 401(k)s offer portability and potentially higher returns. If you have both, consider the pension as your “bond allocation” and invest your 401(k) more aggressively.

10. What if I haven’t saved enough for retirement? Work a few extra years, delay Social Security, consider downsizing, and maximize catch-up contributions. It’s not too late at any age to improve your trajectory.