Quick Answer
Quick Answer: Your Required Minimum Distribution (RMD) equals your December 31 account balance divided by your IRS life expectancy factor. Under SECURE 2.0, RMDs begin at age 73 (born 1951-1959) or age 75 (born 1960 or later). For example, a 75-year-old with a $500,000 Traditional IRA divides by 24.6, yielding an RMD of $20,325. Missing your RMD triggers a 25% penalty (reduced from 50% by SECURE 2.0). Roth IRAs and Roth 401(k)s are exempt from RMDs during the owner's lifetime.
Calculate Your 2026 RMDWhen Do RMDs Start?
The age at which you must begin taking Required Minimum Distributions depends on when you were born. The SECURE Act of 2019 raised the starting age from 70.5 to 72. Then SECURE 2.0 (signed December 2022) raised it again in two phases.
SECURE 2.0 Age Changes
Section 107 of the SECURE 2.0 Act established the following schedule:
| Birth Year | RMD Starting Age | First RMD Year (Approximate) |
|---|---|---|
| 1950 or earlier | 72 (legacy: 70.5) | 2022 or earlier |
| 1951 | 73 | 2024 |
| 1952-1959 | 73 | 2025-2032 |
| 1960 or later | 75 | 2035 or later |
Source: SECURE 2.0 Act of 2022, Section 107. IRS Notice 2024-35.
Your first RMD can be delayed until April 1 of the year after you reach your starting age. However, delaying means you must take two RMDs in that second year -- your first-year RMD plus the current-year RMD -- which could push you into a higher tax bracket.
Which Accounts Require RMDs?
Accounts that require RMDs:
- Traditional IRAs (including Rollover, SEP, and SIMPLE IRAs)
- 401(k) plans (traditional pre-tax contributions)
- 403(b) plans
- 457(b) governmental plans
- Profit-sharing plans
Accounts exempt from RMDs (during the owner's lifetime):
- Roth IRAs -- no RMDs for the original owner, ever
- Roth 401(k) and Roth 403(b) -- exempt starting in 2024 (SECURE 2.0 Section 325). Before 2024, designated Roth accounts in employer plans were subject to RMDs.
Starting in 2024, Roth 401(k) and Roth 403(b) accounts are no longer subject to RMDs during the account owner's lifetime. This eliminated a major disadvantage of Roth employer plans compared to Roth IRAs. If you previously rolled a Roth 401(k) into a Roth IRA solely to avoid RMDs, this is no longer necessary. See our Roth vs Traditional IRA guide for a full comparison.
How to Calculate Your RMD
The RMD calculation requires two pieces of information: your account balance and your age. The formula is intentionally simple.
The RMD Formula
The IRS formula for calculating your Required Minimum Distribution is:
RMD = Prior Year-End Account Balance / Distribution Period
Worked Example: Sarah is 75 years old in 2026. Her Traditional IRA balance on December 31, 2025, was $500,000.
- Account balance (Dec 31, 2025): $500,000
- Distribution period for age 75: 24.6 (from IRS Uniform Lifetime Table)
- RMD calculation: $500,000 / 24.6 = $20,325
Sarah must withdraw at least $20,325 from her IRA by December 31, 2026. She can withdraw more, but the excess does not count toward future years' RMDs.
Calculate Your Exact RMD AmountUniform Lifetime Table (IRS Table III Excerpt)
The Uniform Lifetime Table is used by most account owners. The distribution period decreases each year as you age, meaning your RMD as a percentage of your balance increases over time.
| Age | Distribution Period | RMD as % of Balance |
|---|---|---|
| 72 | 27.4 | 3.65% |
| 73 | 26.5 | 3.77% |
| 74 | 25.5 | 3.92% |
| 75 | 24.6 | 4.07% |
| 76 | 23.7 | 4.22% |
| 77 | 22.9 | 4.37% |
| 78 | 22.0 | 4.55% |
| 79 | 21.1 | 4.74% |
| 80 | 20.2 | 4.95% |
| 81 | 19.4 | 5.15% |
| 82 | 18.5 | 5.41% |
| 83 | 17.7 | 5.65% |
| 84 | 16.8 | 5.95% |
| 85 | 16.0 | 6.25% |
| 86 | 15.2 | 6.58% |
| 87 | 14.4 | 6.94% |
| 88 | 13.7 | 7.30% |
| 89 | 12.9 | 7.75% |
| 90 | 12.2 | 8.20% |
| 91 | 11.5 | 8.70% |
| 92 | 10.8 | 9.26% |
| 93 | 10.1 | 9.90% |
| 94 | 9.5 | 10.53% |
| 95 | 8.9 | 11.24% |
Source: IRS Publication 590-B, Table III (Uniform Lifetime). Factors verified against DigitalCalculator.info RMD engine. Percentage calculated as 1 / distribution period.
If Your Spouse Is More Than 10 Years Younger
If your sole beneficiary is a spouse who is more than 10 years younger, you use the Joint Life and Last Survivor Expectancy Table (Table II) instead of the Uniform Lifetime Table. This gives you a longer distribution period and a smaller RMD, because the IRS accounts for the younger spouse's life expectancy.
For example, if you are 75 and your spouse is 62, the joint life expectancy factor is approximately 25.4 (versus 24.6 under the Uniform Lifetime Table), reducing your RMD slightly. You can find the full Table II in IRS Publication 590-B (opens in new tab).
RMDs and Taxes
RMDs from Traditional retirement accounts are taxed as ordinary income in the year you receive them. This can have several ripple effects beyond the immediate tax bill.
How RMDs Are Taxed
When your RMD is added to your other income sources (Social Security benefits, pensions, investment income), it increases your Adjusted Gross Income (AGI). A higher AGI can trigger several consequences:
- Higher marginal tax bracket: Large RMDs can push you from the 22% bracket into 24% or higher. See our 2026 tax brackets guide for current thresholds.
- IRMAA surcharges: If your Modified AGI (MAGI) exceeds $106,000 (single) or $212,000 (married filing jointly) in 2026, you pay higher Medicare Part B and Part D premiums through the Income-Related Monthly Adjustment Amount (IRMAA).
- Social Security taxation: Up to 85% of your Social Security benefits become taxable when your combined income exceeds $34,000 (single) or $44,000 (married filing jointly). RMDs count toward this calculation. Learn more in our Social Security claiming guide.
- Net Investment Income Tax (NIIT): A 3.8% surtax applies to investment income when MAGI exceeds $200,000 (single) or $250,000 (married filing jointly). While the RMD itself is not investment income, it raises your MAGI and can trigger NIIT on other investment earnings.
State Tax Considerations
Your state may offer additional tax treatment for retirement income:
- No income tax states (9): Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming do not tax RMD income
- States with retirement income exclusions: Many states (such as Illinois, Mississippi, Pennsylvania) exclude some or all retirement income from state taxes
- States that fully tax RMDs: States like California, Minnesota, and Vermont tax RMDs as ordinary income with no special exclusion
Check your state's specific rules, as exemptions often depend on your age, income level, and account type.
Strategies to Reduce RMD Tax Impact
While you cannot avoid RMDs entirely from traditional accounts, several legitimate strategies can reduce the tax burden. The most effective approaches involve planning before RMDs begin.
Roth Conversions Before RMDs Begin
Converting Traditional IRA or 401(k) funds to a Roth IRA before your RMD starting age is one of the most powerful strategies available. The conversion is taxable in the year you convert, but once the money is in a Roth:
- It grows tax-free permanently
- It is not subject to RMDs
- Qualified withdrawals are completely tax-free
The "sweet spot" for Roth conversions is typically the years between retirement and when RMDs begin -- when your income may be lower, placing you in a lower tax bracket. Use our Roth Conversion Calculator to model different conversion amounts, and read the Roth Conversion Strategy Guide for a detailed approach.
Consider converting just enough each year to "fill up" your current tax bracket without spilling into the next one. For example, if you are in the 22% bracket with $30,000 of room before the 24% threshold, converting $30,000 per year keeps your effective rate low while steadily reducing your future RMD base. Check the 2026 standard deduction amounts to determine your taxable income threshold.
Qualified Charitable Distributions (QCDs)
If you are age 70.5 or older and make charitable donations, a QCD allows you to transfer up to $105,000 per year (2024 limit, indexed annually for inflation) directly from your Traditional IRA to a qualified charity. The distribution:
- Counts toward your RMD for the year
- Is excluded from your taxable income
- Does not require you to itemize deductions
This is especially valuable with the higher standard deduction ($15,000 single / $30,000 married), since most retirees no longer itemize. A QCD lets you get the tax benefit of charitable giving without itemizing.
QCDs must be transferred directly from your IRA custodian to the charity. If the check is made payable to you first, it does not qualify. QCDs are available only from IRAs, not from 401(k) or 403(b) plans. Additionally, you cannot claim a charitable deduction for the same donation that qualifies as a QCD.
Timing Your First RMD
You can delay your first RMD until April 1 of the year after you reach your starting age. However, this means you will take two RMDs in that second year (the delayed first-year RMD plus the current-year RMD), which often pushes retirees into a higher tax bracket.
Example: If you turn 73 in 2026, you can delay your first RMD until April 1, 2027. But you will also owe your 2027 RMD by December 31, 2027 -- two distributions in one year. For most people, taking the first RMD in the year they turn 73 is the better choice unless their income will be significantly lower in the following year.
Consider the "Still Working" Exception
If you are still employed and participate in your current employer's retirement plan, you may be able to delay RMDs from that specific plan until April 1 of the year after you retire. Key requirements:
- You must still be working (not just maintaining the account)
- You must not own more than 5% of the company
- The exception applies only to the current employer's plan, not to IRAs or plans from former employers
If you plan to work past 73 or 75 and have a significant balance in your current employer's plan, this exception can provide valuable additional years of tax-deferred growth. For earlier withdrawal considerations, see our 401(k) early withdrawal penalty guide.
Model Your RMD Over Multiple YearsInherited IRA RMD Rules
The rules for inherited IRAs changed dramatically with the original SECURE Act (2019) and were further clarified by IRS final regulations published in 2024. The rules depend on whether you are a spouse or non-spouse beneficiary, and whether the original owner had begun taking RMDs.
Spouse Beneficiaries
Surviving spouses have the most flexibility. Options include:
- Treat the IRA as your own: Roll the inherited IRA into your own IRA or elect to treat it as your own. RMDs follow your own age and the standard Uniform Lifetime Table.
- Remain as beneficiary: Take RMDs based on your single life expectancy, which may be advantageous if you are younger than 59.5 and need penalty-free access.
- 10-year rule: Optionally empty the account within 10 years (no annual RMD requirement for spouses who choose this option).
Non-Spouse Beneficiaries (10-Year Rule)
For most non-spouse beneficiaries who inherited an IRA after December 31, 2019, the SECURE Act's 10-year rule applies. You must empty the entire inherited account by December 31 of the 10th year following the original owner's death.
Per IRS final regulations (July 2024), if the original owner had already begun taking RMDs before death, the beneficiary must also take annual distributions during the 10-year period. If the owner died before their RMD beginning date, no annual distributions are required -- only the 10-year deadline to empty the account.
The IRS waived the penalty for missed annual distributions in 2021-2024 while finalizing guidance. Starting in 2025, the annual distribution requirement is fully enforced when the original owner died on or after their Required Beginning Date. Consult a tax professional for your specific situation.
Exceptions to the 10-Year Rule
The following beneficiaries are considered "eligible designated beneficiaries" and can use the life expectancy (stretch) method instead of the 10-year rule:
- Surviving spouse
- Minor children of the account owner (until they reach the age of majority, then the 10-year clock starts)
- Disabled individuals (as defined by IRC Section 72(m)(7))
- Chronically ill individuals
- Beneficiaries not more than 10 years younger than the deceased account owner
For more on retirement account withdrawal rules, see our 401(k) by age benchmarks and IRA contribution limits 2026 guides.
Penalty for Missing an RMD
Before SECURE 2.0, failing to take your full RMD resulted in a punishing 50% excise tax on the shortfall. SECURE 2.0 Section 302 significantly reduced this penalty:
| Scenario | Penalty Rate | Example (on $20,000 shortfall) |
|---|---|---|
| Pre-SECURE 2.0 (before 2023) | 50% | $10,000 penalty |
| Standard penalty (2023+) | 25% | $5,000 penalty |
| Corrected within IRS correction window | 10% | $2,000 penalty |
Source: SECURE 2.0 Act, Section 302. The correction window is generally two years from the date the tax is imposed.
To correct a missed RMD, withdraw the shortfall as soon as possible and file IRS Form 5329 with your tax return. If you correct the missed RMD within the applicable correction window, request the reduced 10% penalty rate.
Set up automatic withdrawals with your IRA custodian or plan administrator. Most major brokerages (Fidelity, Schwab, Vanguard) offer automatic RMD distribution services that calculate and distribute your RMD each year. This removes the risk of forgetting and incurring the penalty.
Frequently Asked Questions
At what age do RMDs start in 2026?
Under SECURE 2.0, RMDs start at age 73 if you were born between 1951 and 1959, or age 75 if you were born in 1960 or later. Your first RMD must be taken by April 1 of the year after you reach your RMD starting age.
How do I calculate my Required Minimum Distribution?
Divide your retirement account balance as of December 31 of the prior year by the distribution period from the IRS Uniform Lifetime Table (Table III in IRS Publication 590-B). For example, at age 75 with a $500,000 balance, the distribution period is 24.6, so your RMD is $20,325. Use our RMD Calculator for an instant calculation.
What is the penalty for missing an RMD?
SECURE 2.0 reduced the penalty from 50% to 25% of the amount not withdrawn. The penalty drops further to 10% if you correct the shortfall within two years (during the IRS correction window). File IRS Form 5329 with your tax return to report the missed RMD.
Do Roth IRAs require RMDs?
No. Roth IRAs do not have RMDs for the original account owner during their lifetime. Additionally, SECURE 2.0 Section 325 eliminated RMDs for designated Roth 401(k) and Roth 403(b) accounts starting in 2024. Inherited Roth IRAs, however, are subject to the 10-year distribution rule for most non-spouse beneficiaries.
What is a Qualified Charitable Distribution (QCD)?
A QCD allows individuals age 70.5 or older to transfer up to $105,000 per year (2024 limit, indexed annually for inflation) directly from a Traditional IRA to a qualified charity. The distribution satisfies your RMD and is excluded from taxable income, making it one of the most tax-efficient ways to give to charity in retirement.
Can I aggregate RMDs from multiple retirement accounts?
For Traditional IRAs, yes. You calculate the RMD separately for each IRA, add them together, and can withdraw the total from any one or combination of Traditional IRAs. However, 401(k) and 403(b) RMDs must generally be taken separately from each plan.
What is the still-working exception for RMDs?
If you are still employed, do not own more than 5% of the company, and participate in your current employer's retirement plan, you can delay RMDs from that specific plan until April 1 of the year after you retire. This exception applies only to the current employer's plan, not to IRAs or plans from former employers.
How does the inherited IRA 10-year rule work?
Under the SECURE Act (2019), most non-spouse beneficiaries must empty an inherited IRA within 10 years of the original owner's death. Per IRS final regulations (2024), if the original owner had already started RMDs, beneficiaries must also take annual distributions during the 10-year period. Exceptions exist for surviving spouses, minor children, disabled or chronically ill beneficiaries, and beneficiaries not more than 10 years younger than the deceased.
Key Takeaways
- Know your RMD starting age. Under SECURE 2.0, it is 73 for those born 1951-1959 and 75 for those born 1960 or later. Planning ahead gives you time to implement tax-saving strategies.
- The formula is simple. Divide your December 31 account balance by the distribution period from the IRS Uniform Lifetime Table. At age 75 with $500,000, your RMD is $20,325.
- Penalties are real but reduced. Missing your RMD costs 25% of the shortfall (down from 50%), or 10% if corrected quickly. Set up automatic distributions to avoid this entirely.
- Roth accounts offer RMD-free growth. Both Roth IRAs and (starting 2024) Roth 401(k)s are exempt from RMDs, making Roth conversions before RMDs begin a powerful strategy.
- QCDs are the most tax-efficient way to give. If you are charitable and age 70.5+, transferring up to $105,000 directly from your IRA to charity satisfies your RMD without increasing your taxable income.
- Inherited IRAs follow the 10-year rule. Most non-spouse beneficiaries must empty inherited accounts within 10 years, with annual distributions required if the original owner was already taking RMDs.
Required Minimum Distributions are a critical part of retirement tax planning. Whether you are approaching your first RMD or have been taking distributions for years, understanding the rules and available strategies helps you keep more of your hard-earned retirement savings. Consult a qualified tax professional to tailor these strategies to your specific situation.
Calculate Your RMD Under 2026 New Rules →For additional retirement planning guidance, explore our retirement savings by age benchmarks, HSA contribution limits for 2026, and Social Security claiming strategies.
Sources
- IRS Publication 590-B: Distributions from Individual Retirement Arrangements (IRAs) (opens in new tab)
- IRS: Required Minimum Distributions FAQs (opens in new tab)
- SECURE 2.0 Act of 2022 (Consolidated Appropriations Act, Division T) (opens in new tab)
- IRS Final Regulations: Required Minimum Distributions (July 2024) (opens in new tab)
- IRS: Qualified Charitable Distributions (QCDs) (opens in new tab)
- Social Security Administration: Retirement Benefits and Taxes (opens in new tab)