Required Minimum Distributions — RMDs — are the IRS's mechanism for ensuring that money in tax-deferred retirement accounts eventually gets taxed. Once you reach the applicable starting age, you must withdraw a minimum amount from most pre-tax retirement accounts each year, whether you need the income or not. Withdrawing less than the required minimum triggers a steep excise tax.
The rules changed significantly with the SECURE Act 2.0 (signed December 2022), which raised the RMD starting age and eliminated RMD requirements for designated Roth accounts in employer plans. Here is what you need to know for 2026.
What is a Required Minimum Distribution?
An RMD is a minimum annual withdrawal the IRS requires from most tax-deferred retirement accounts. When you contribute to a traditional IRA or 401(k), your contributions and growth are not taxed until withdrawal. RMDs are the IRS's way of enforcing that the tax deferral eventually ends — you must pull a minimum amount out (and pay ordinary income tax on it) each year.
There is no limit on how much you can withdraw above the RMD amount. But withdrawing less than the required minimum triggers a penalty on the shortfall.
Which age applies to you
Under SECURE Act 2.0, the RMD starting age now depends on your birth year:
- Born 1950 or earlier: You are already subject to RMDs under prior rules. Continue taking distributions as you have been.
- Born 1951–1959: Your RMD starting age is 73. Your Required Beginning Date (the deadline for your first RMD) is April 1 of the year after you turn 73.
- Born 1960 or later: Your RMD starting age is 75. This provision does not take effect for those born in 1960 until 2035.
The two-RMD trap: For your first RMD only, you may delay the distribution until April 1 of the following calendar year. But if you take that option, you will have two RMDs due in the same year — one by April 1 (for the prior year) and one by December 31 (for the current year). Two RMDs in one year doubles the taxable income in that year, which can push you into a higher bracket or affect Medicare premium calculations. Many retirees find it simpler to take the first RMD in the year they turn the applicable age.
Which retirement accounts require RMDs?
Accounts subject to RMDs:
- Traditional IRA
- SEP-IRA (see retirement plan options for the self-employed)
- SIMPLE IRA
- 401(k), 403(b), 457(b) governmental plans
- Most other defined contribution plans
Accounts exempt from RMDs while you are alive:
- Roth IRA — Since contributions are made with after-tax money, the IRS does not require forced withdrawals during your lifetime. Growth and qualified withdrawals remain tax-free.
- Roth 401(k), Roth 403(b), Roth 457(b) — Starting in 2024, SECURE Act 2.0 eliminated the RMD requirement for these designated Roth accounts in employer plans while the original owner is alive. Previously, Roth 401(k)s did require RMDs.
For an overview of how Roth and traditional accounts differ beyond the RMD question, see Roth IRA vs. Traditional IRA: How to Choose in 2026.
How to calculate your RMD
Per IRS Publication 590-B, the annual RMD formula is:
RMD = Prior-year December 31 account balance ÷ IRS life expectancy factor
The life expectancy factor comes from the IRS Uniform Lifetime Table (updated in 2022 to reflect longer average lifespans). Selected values:
| Age | Uniform Lifetime Table Factor |
|---|---|
| 73 | 26.5 |
| 74 | 25.5 |
| 75 | 24.6 |
| 76 | 23.7 |
| 80 | 20.2 |
| 85 | 16.0 |
Example: You turn 73 in 2026 and your traditional IRA balance was $500,000 on December 31, 2025. Your 2026 RMD = $500,000 ÷ 26.5 = approximately $18,868.
Aggregation rules: If you have multiple traditional IRAs, calculate each account's RMD separately, then withdraw the total from any combination of those IRA accounts. 401(k) RMDs cannot be aggregated with IRAs — each 401(k) plan must satisfy its own RMD from within that plan.
What happens if you miss an RMD?
Missing an RMD triggers a 25% excise tax on the amount not withdrawn. SECURE Act 2.0 reduced this from the prior 50% penalty. The rate drops to 10% if you correct the shortfall within the IRS correction window — typically two years for IRA accounts.
To correct a missed RMD and claim the reduced penalty: take the missed distribution, then file IRS Form 5329 for the year the RMD was missed, requesting penalty abatement. Per IRS FAQ on RMDs, the IRS has historically waived penalties for first-time errors when the taxpayer corrects promptly — but this is discretionary and not guaranteed.
Qualified Charitable Distributions: satisfying RMDs without paying income tax
If you are age 70½ or older, a Qualified Charitable Distribution (QCD) lets you transfer money directly from your IRA to a qualified 501(c)(3) charity. The transferred amount:
- Counts toward your RMD for the year
- Is excluded from your gross income — you pay no ordinary income tax on it
The QCD limit for 2024 is $105,000 per person, indexed for inflation — verify the current year's limit at irs.gov before making a contribution.
A QCD eliminates the taxable income that a cash RMD would create, which can also reduce income-based Medicare premium surcharges (IRMAA). To qualify, the transfer must go directly from your IRA custodian to the charity — a distribution paid to you first, then donated, does not count as a QCD.
Inherited IRA RMD rules
The rules for inherited retirement accounts changed significantly with the original SECURE Act (2019). Non-spouse beneficiaries who inherited an IRA or 401(k) from someone who died on or after January 1, 2020 generally must deplete the account within 10 years. The "stretch IRA" strategy — spreading withdrawals over a beneficiary's full lifetime — is no longer available for most non-spouse heirs.
Per IRS guidance on RMDs for IRA beneficiaries, exceptions apply to "eligible designated beneficiaries": surviving spouses, minor children of the deceased (until they reach adulthood), disabled or chronically ill beneficiaries, and individuals within 10 years of the original owner's age. These groups retain the ability to stretch distributions over their own life expectancy.
The specific annual withdrawal requirements within the 10-year window depend on whether the original account owner died before or after their Required Beginning Date. Inherited IRA rules are complex and have seen evolving IRS guidance — beneficiaries should verify current requirements with a tax advisor.
The still-working exception for 401(k) plans
If you are still employed and participating in your current employer's 401(k) or 403(b), you may be able to delay RMDs from that specific plan until April 1 of the year after you retire — even if you've passed the normal RMD starting age. Exceptions:
- The still-working exception does not apply to IRAs. Traditional IRA RMDs begin at your applicable age regardless of employment status.
- It does not apply if you own 5% or more of the employer.
- It covers only your current employer's plan. Old employer 401(k)s already subject to RMDs are not protected by your current employment.
Rolling an old 401(k) into an IRA after you've reached your RMD age immediately subjects the rollover amount to IRA RMD rules. For the mechanics of 401(k) rollovers, see How to Roll Over a 401(k) to an IRA When You Leave a Job.
Self-employed business owners using a Solo 401(k) or SEP-IRA do not qualify for the still-working exception — they own their own business and the 5%-ownership disqualifier applies.
This content is for educational purposes only and does not constitute tax or financial planning advice. RMD rules are subject to change. Verify current requirements with your tax advisor and at irs.gov before making any distributions.
