Required Minimum Distribution (RMD) Rules 2026: Age, Calculation & Penalty Guide

Required minimum distributions are the IRS's mechanism for collecting tax on money you've been deferring in traditional IRAs and 401(k)s since your working years. Once you reach your RMD start age — 73 or 75 depending on your birth year — withdrawals are mandatory and the amounts grow as a percentage of your account balance each year. Understanding the rules, the calculation method, and the strategies available can save thousands in taxes and Medicare surcharges.

When do RMDs start?

SECURE 2.0 (§ 107, effective 2023) changed the RMD starting age for the second time in three years. Your start age depends on your birth year:

¹ Those who already reached RMD age under the old 72-year rule continue under that schedule.

Which accounts are subject to RMDs?

Still working exception: If you are still employed at the company sponsoring a 401(k) or 403(b) and you do not own more than 5% of that company, you can delay RMDs from that specific plan until you retire — even past your RMD start age. This exception does not apply to IRAs or old 401(k) plans from previous employers.

Quick RMD estimator

This tool calculates your required minimum distribution for the current year. Enter your December 31 prior-year balance and your age as of December 31 of this year. For a 15-year multi-year RMD projection with tax and IRMAA estimates, use the full RMD calculator.

How the IRS calculates your RMD: the Uniform Lifetime Table

The RMD formula is straightforward:

RMD = Prior Dec 31 account balance ÷ IRS life-expectancy divisor

The divisor comes from the Uniform Lifetime Table (published in Treasury Decision 9917, effective for 2022 and later). The table is updated every year you age — and because divisors decrease as you get older, your RMD percentage rises every year even if your account balance stays flat.

Divisors from IRS Uniform Lifetime Table, T.D. 9917. RMD examples assume a static balance for illustration; actual balances change with portfolio returns and prior withdrawals.

Spouse exception: Joint Life Expectancy Table

If the sole beneficiary of your IRA or 401(k) is your spouse and your spouse is more than 10 years younger than you, you may use the IRS Joint Life and Last Survivor Expectancy Table (Appendix B, Pub. 590-B). The joint table divisors are larger, producing a smaller required withdrawal each year. This can make a meaningful difference for a couple with a 15- or 20-year age gap.

First-year RMD: the April 1 deadline and the double-RMD trap

The IRS gives you a one-time grace period on your first RMD. Instead of December 31 of the year you reach your RMD age, your first RMD isn't due until April 1 of the following year. All subsequent RMDs are due by December 31 of that same year.

Example: You turn 73 in March 2026 (born 1953). You can take your first RMD by December 31, 2026, or delay until April 1, 2027. If you delay, your 2027 RMD is still due by December 31, 2027 — so in 2027 you'll take two distributions. If your combined income from both RMDs plus Social Security pushes your MAGI above an IRMAA tier boundary, your Part B premiums in 2029 will reflect that income spike.

Missed RMD penalty: 25% (and how to reduce it to 10%)

If you don't take your full RMD by the deadline, the IRS imposes an excise tax on the shortfall — the amount that should have been withdrawn but wasn't. SECURE 2.0 § 302 reduced this penalty significantly:

The correction window runs for two taxable years after the RMD was due. To qualify for the reduced 10% rate, you must (1) take the missed RMD during the correction window and (2) file IRS Form 5329 for the year of the missed RMD, reporting and paying the excise tax at the reduced rate. The IRS may also grant a waiver in cases of reasonable error if you make up the shortfall quickly.

Practical note: Even at 10%, the penalty on a missed $30,000 RMD is $3,000 — and the $30,000 still gets taxed as ordinary income when you do take it. Missed RMDs are rarely accidental for people paying attention; they usually happen when an account is forgotten (e.g., an old 401(k) from a prior employer), a beneficiary doesn't know an inherited account has RMDs, or a custodian's automatic-withdrawal setup fails. Set a calendar reminder and confirm the withdrawal posted by mid-December each year.

Aggregation rules: IRAs vs. 401(k)s

The rules for which accounts you pull the RMD from differ between IRAs and workplace plans.

Traditional IRAs — aggregate distribution allowed

You calculate a separate RMD for each traditional IRA you own, but you can satisfy the total obligation by withdrawing any combination of amounts from any or all of your IRAs. For example, if you have three IRAs requiring $8,000, $5,000, and $7,000 respectively, you can take all $20,000 from one IRA, split it any way you choose, or take different amounts from each — as long as you withdraw at least $20,000 total from the IRA pool.

401(k), 403(b), and other workplace plans — distribute from each plan separately

Workplace retirement plans do not permit aggregation. If you have an RMD from a 401(k) at one former employer and another 401(k) at a different former employer, you must take the RMD from each plan separately. You cannot take both RMDs from one account. This is why consolidating old 401(k) plans into an IRA before RMD age simplifies administration.

403(b) exception: Multiple 403(b) accounts are treated like IRAs for aggregation purposes — you can total the 403(b) RMDs and take them from any one or combination of your 403(b) accounts. However, you cannot aggregate a 403(b) RMD with a traditional IRA RMD.

Strategies to manage, reduce, and optimize RMDs

1. Roth conversions before your RMD start date

Every dollar you convert from a traditional IRA to a Roth IRA before age 73 (or 75) is a dollar that will never be subject to an RMD. The conversion is taxable in the year you do it, but the converted balance grows tax-free and is never forced out. A coordinated Roth conversion strategy in your 60s — filling tax brackets up to the top of the 22% bracket, or just below the first IRMAA cliff — can meaningfully reduce the size of your taxable IRA at RMD age. See the Roth conversion calculator to model conversion scenarios.

2. Qualified charitable distributions (QCDs) — up to $111,000 in 2026

If you are age 70½ or older, you can direct up to $111,000² per year from your traditional IRA directly to qualifying charities (a QCD). A QCD satisfies your RMD but does not count as taxable income. The benefit is triple: you avoid income tax on the distribution, your MAGI for IRMAA purposes doesn't increase, and less of your Social Security is pushed into the taxable 85% tier. This is one of the most powerful tools for retirees with charitable intent. See the QCD guide for step-by-step instructions.

² $111,000 QCD limit for 2026, per IRS Rev. Proc. 2025-32. Indexed for inflation going forward.

3. Delay the first RMD strategically

If your income is unusually high in the year you reach RMD age (a large Roth conversion, a home sale, concentrated stock vesting), consider delaying the first RMD to April 1 of the following year — when your income situation may be more favorable. But model the impact: you'll owe two RMDs in the following year, so the timing benefit has to outweigh the stacking risk.

4. Still-working exception — delay on current-employer 401(k)

If you're still working for the employer sponsoring a 401(k) and you own 5% or less of the company, you can delay RMDs on that plan until you retire. This can be meaningful if you have a large 401(k) balance with your current employer and plan to work past your RMD age. IRAs and prior-employer 401(k)s are not eligible — consider rolling old 401(k) balances into your current-employer plan if it accepts incoming rollovers, to shelter more from RMDs.

5. Qualified longevity annuity contract (QLAC)

You can use up to the lesser of $200,000 or 25% of your IRA balance to purchase a QLAC — a deferred income annuity that starts paying at a future date you choose, up to age 85. The QLAC balance is excluded from the RMD calculation until payouts begin. This effectively removes that portion from the RMD pool, reducing mandatory taxable income in your 70s while creating guaranteed income in your late 80s and beyond.

6. Aggregate wisely across IRAs

Since IRA RMDs can be satisfied from any IRA, use the aggregation rule strategically. Take distributions from whichever IRA has the most appropriate investment exposure for your spending needs. Many retirees keep a cash or short-term bond position in one IRA specifically to draw the RMD from, leaving equity-heavy IRAs to continue growing without forced selling.

Frequently asked questions

1. IRS: Required Minimum Distributions (RMDs) — authoritative IRS overview of RMD rules for plan participants
2. IRS Publication 590-B: Distributions from Individual Retirement Arrangements — complete Uniform Lifetime Table and Joint Life Table (T.D. 9917)
3. SECURE 2.0 Act of 2022 — § 107 (RMD age change to 73/75), § 302 (penalty reduction 50%→25%/10%), § 325 (Roth 401k RMD elimination 2024)
4. IRS Notice 2023-75 — RMD transitional relief, including the 1959 birth year clarification and inherited IRA guidance
5. IRS Form 5329 — Additional Taxes on Qualified Plans (used to report missed RMDs and request penalty waiver)

RMD rules, divisors, and limits verified as of July 2026 per IRS Pub. 590-B (T.D. 9917), SECURE 2.0 final provisions, and IRS Notice 2023-75.