Required minimum distributions explained — 2026 rules, ages, and strategies

A Required Minimum Distribution (RMD) is the minimum amount the IRS requires you to withdraw annually from tax-deferred retirement accounts once you reach a certain age. Miss one and you face a 25% penalty on the amount you should have withdrawn. RMDs begin at age 73 for those born between 1951 and 1959, and at 75 for those born in 1960 or later (effective 2033 under SECURE 2.0). Here's what you need to know.

What RMDs are and why they exist

Tax-deferred retirement accounts — traditional IRAs, 401(k)s, 403(b)s, SEP-IRAs, and SIMPLE IRAs — let you invest pre-tax dollars and defer taxes on growth until you withdraw. The IRS allows this tax deferral as an incentive to save for retirement, but it was never intended to be a permanent tax shelter. RMDs are the mechanism that ensures these accounts are eventually taxed.

Without RMDs, a retiree could leave a $2 million IRA untouched indefinitely, passing the entire tax-deferred balance to heirs. The RMD rules prevent this by requiring minimum annual withdrawals that generate taxable income. You can always withdraw more than the RMD — but you must withdraw at least the minimum, on time, every year.

Who must take RMDs in 2026

The age at which RMDs begin depends on when you were born — the SECURE Act and SECURE 2.0 Act have changed the starting age twice in recent years:

Still working exception: If you're still employed and participating in your current employer's 401(k), you may be able to delay RMDs from that specific plan until you retire — as long as you don't own more than 5% of the company. This exception applies only to the current employer's plan, not to IRAs or 401(k)s from previous employers.

How to calculate your RMD

The RMD formula is straightforward:

The life expectancy factor comes from the IRS Uniform Lifetime Table (Publication 590-B, Table III), which assigns a distribution period to each age. At age 73 the factor is 26.5; at 80 it's 20.2; at 90 it's 12.2. The factor decreases each year, meaning the required withdrawal percentage rises as you age.

Which table to use

Most account owners use the Uniform Lifetime Table. There are two exceptions:

• Joint and Last Survivor Table: Use this if your spouse is both your sole designated beneficiary and more than 10 years younger than you. This produces a lower RMD because the distribution period is longer when measured against two lives.
• Single Life Expectancy Table: Used by beneficiaries of inherited IRAs, not original account owners.

IRA aggregation rules

If you have multiple traditional IRAs, you calculate the RMD for each account separately — but you can take the combined total from any one IRA or split it across accounts. This flexibility doesn't apply to 401(k)s: each 401(k) RMD must be calculated and withdrawn from that specific plan. 403(b) accounts can be aggregated like IRAs.

RMD deadlines and the first-year trap

For most retirees, RMDs must be taken by December 31 of each year. The one exception is your very first RMD — you may delay it until April 1 of the following year.

Penalties for missing an RMD

If you fail to take your full RMD by the applicable deadline, the IRS imposes an excise tax on the shortfall. SECURE 2.0 reduced this penalty significantly:

• 25% excise tax on the amount you should have withdrawn but didn't
• Reduced to 10% if you correct the error by taking the missed distribution and filing IRS Form 5329 within two years
• Prior to SECURE 2.0, the penalty was 50% — the reduction to 25% (and 10% for timely correction) is a significant improvement

On a $20,000 missed RMD, the penalty is $5,000 at the 25% rate — or $2,000 if you correct it within two years. These are penalties on top of the ordinary income tax you'll owe on the distribution itself.

Strategies to reduce RMD tax impact

Qualified Charitable Distributions (QCDs)

A QCD allows you to transfer up to a set annual limit directly from a traditional IRA to a qualified charity — indexed for inflation from a $100,000 base starting 2024 (verify the current-year limit at IRS.gov before acting). This transfer counts toward your RMD without being included in your taxable income — a significant benefit. A $20,000 QCD satisfying your entire RMD means you pay no income tax on that distribution. QCDs are available only from IRAs (not 401(k)s), you must be 70½ or older, and the transfer must go directly from the IRA to the charity — not to you first.

Roth conversions before RMDs begin

Converting traditional IRA dollars to a Roth IRA in the years between retirement and age 73 reduces your future RMD obligations. The converted amount is taxable in the year of conversion, but once in the Roth it grows tax-free and is never subject to RMDs during your lifetime. This strategy is most effective in lower-income years — typically after retirement but before Social Security and RMDs create peak taxable income. A common approach: convert enough each year to fill up a lower tax bracket (e.g., to the top of the 22% bracket) without crossing into the 24% bracket.

Spreading withdrawals throughout the year

Taking your RMD as one lump sum in December is the most common approach — and often the worst. Monthly or quarterly distributions smooth your income and cash flow throughout the year. Note that taxes are not automatically withheld from RMDs unless you elect withholding — many retirees set up voluntary federal withholding to avoid underpayment penalties at year-end. Consider setting up automatic monthly RMD distributions rather than year-end lump sums.

Coordinate with Social Security timing

RMDs add to taxable income — specifically to "provisional income" (also called combined income), which determines what percentage of Social Security benefits are taxable. At higher provisional income levels, up to 85% of Social Security benefits become taxable. RMDs can also trigger Medicare IRMAA surcharges. If you're approaching age 73 and haven't yet claimed Social Security, factor RMD income into your Social Security claiming decision — the combined income effect can be substantial.

Still-working exception for 401(k)s

If you're still employed at the company sponsoring your 401(k) and don't own more than 5% of the company, you may be able to delay RMDs from that plan until you retire. This doesn't apply to IRAs or old employer 401(k)s. Some retirees roll old 401(k)s into their current employer's plan specifically to consolidate assets under this delay provision.

Frequently asked questions

Can I take more than the RMD?

Yes — the RMD is a minimum, not a maximum. You can withdraw any amount above the minimum. However, excess withdrawals from one year cannot be credited toward a future year's RMD. Each year's obligation is calculated independently from that year's beginning balance.

What if I have multiple IRAs?

Calculate the RMD for each IRA separately, but you can take the combined total from any one IRA or split it across accounts. This flexibility only applies to IRAs — each 401(k) must satisfy its own RMD from within that plan.

Do inherited IRAs have RMDs?

Yes — and the rules are complex. Most non-spouse beneficiaries who inherited after 2019 must empty the account within 10 years. If the original owner had already begun taking RMDs, beneficiaries must also take annual RMDs in years 1–9. The rules for eligible designated beneficiaries (surviving spouses, minor children, disabled individuals) differ. Inherited IRA rules are beyond the scope of this guide. Note that IRS enforcement of annual RMD requirements for inherited IRAs has been inconsistent in recent years — confirm current IRS guidance and consult a tax professional.

Are RMDs subject to state income tax?

State taxation of RMDs varies significantly. Some states exempt retirement income entirely; others tax it at the same rate as ordinary income. A handful of states have no income tax. Verify your state's treatment of IRA and 401(k) distributions before estimating your total tax liability on RMDs.

Are RMDs from Roth accounts required?

Roth IRAs have no RMDs during the original owner's lifetime. Starting in 2024, SECURE 2.0 eliminated RMDs from Roth 401(k) and Roth 403(b) accounts during the owner's lifetime as well. Beneficiaries of Roth accounts are still subject to distribution requirements.

What is the QCD limit?

The QCD limit is indexed for inflation annually from a $100,000 base (starting 2024 under SECURE 2.0). Verify the current-year limit at IRS.gov — the limit changes each year. A one-time QCD to certain charitable vehicles (charitable remainder annuity trusts, charitable remainder unitrusts, or charitable gift annuities) is also available, subject to a separate indexed cap.

The bottom line

RMDs are a non-negotiable feature of tax-deferred retirement accounts — the IRS will eventually collect taxes on pre-tax contributions and deferred growth. The rules have become more favorable in recent years: the starting age rose from 70½ to 73 (and will rise to 75 for younger cohorts), and the missed-RMD penalty dropped from 50% to 25%. But the obligation remains.

The most important actions: know your RMD age, calculate your distribution each year using the prior December 31 balance, take it by the deadline, and consider strategies like QCDs and Roth conversions to reduce the tax impact over time. For most retirees, working with a tax professional in the years approaching age 73 to model the RMD tax impact alongside Social Security, Medicare, and other income is well worth the cost.