RMD Guide 2026: Required Minimum Distributions, Age 73 Rules & QCD Strategy

What Are RMDs?

Required Minimum Distributions (RMDs) are mandatory annual withdrawals from tax-deferred retirement accounts. The IRS doesn't let you keep money in these accounts forever—at some point, they want their taxes.

RMDs represent the minimum amount you MUST withdraw each year once you reach the required age. You can always withdraw more, but you can't withdraw less without facing steep penalties.

Accounts Subject to RMDs

Account Type	RMDs Required?	Notes
Traditional IRA	Yes	Starting at age 73
401(k), 403(b), 457(b)	Yes	Traditional (pre-tax) portion
SEP IRA	Yes	Treated as Traditional IRA
SIMPLE IRA	Yes	Treated as Traditional IRA
Inherited IRAs/401(k)s	Yes	Different rules apply
Roth IRA	No	Original owner exempt
Roth 401(k)	No	Changed in 2024 (was Yes)

Why RMDs Exist

Traditional retirement accounts offer tax-deferred growth—you got a deduction going in, and your investments grow untaxed. The government gave you this benefit to encourage retirement savings, but they eventually want taxes on that money. RMDs ensure you can't defer forever.

Good News About Roth Accounts

Roth IRAs have never had RMDs for the original owner. And starting in 2024, Roth 401(k)s are also RMD-exempt. This makes Roth accounts valuable for estate planning—money can grow tax-free for your entire life.

Who Must Take RMDs?

Current RMD Starting Age

The SECURE 2.0 Act changed RMD ages. Here's the current schedule:

Birth Year	RMD Starting Age	When You Turn That Age
1950 or earlier	72	Already started
1951-1959	73	2024-2032
1960 or later	75	2035 or later

If you were born in 1953, you turn 73 in 2026. Your first RMD is due by April 1, 2027 (or December 31, 2026 if you want to avoid two RMDs in 2027).

Still Working Exception (401(k) only)

If you're still working and don't own more than 5% of the company, you can delay 401(k) RMDs from your current employer's plan until you actually retire. This doesn't apply to:

Traditional IRAs (must take RMDs regardless of work status)
Old 401(k)s from previous employers
5% or greater owners of the company

Inherited Accounts

Inherited retirement accounts have their own complex RMD rules:

Spouse inheritor: Can treat as own IRA, follow standard rules
Non-spouse (post-2019): Must empty account within 10 years
Eligible designated beneficiaries: May stretch over lifetime

The 10-year rule applies to most non-spouse beneficiaries who inherited after 2019.

Calculating Your RMD

The Basic Formula

RMD = Account Balance (Dec 31 prior year) / Life Expectancy Factor

The IRS provides life expectancy tables in Publication 590-B. The most commonly used is the Uniform Lifetime Table.

Uniform Lifetime Table (Selected Ages)

Age	Distribution Period (Factor)	Approximate % of Balance
73	26.5	3.77%
75	24.6	4.07%
77	22.9	4.37%
80	20.2	4.95%
85	16.0	6.25%
90	12.2	8.20%
95	8.9	11.24%

Example Calculation

Age 75 with $500,000 IRA balance on December 31, 2025:

Step	Calculation	Result
Prior year-end balance	December 31, 2025	$500,000
Distribution period (age 75)	From IRS table	24.6
2026 RMD	$500,000 / 24.6	$20,325

Multiple Accounts

If you have multiple Traditional IRAs:

Calculate RMD for each separately
Add them together
You can take the total from any one or combination of your IRAs

For 401(k)s: Each 401(k) RMD must come from that specific plan. You can't combine them like IRAs.

Example: Multiple Accounts

Account	Balance	RMD Calculation	RMD Amount
Traditional IRA #1	$300,000	$300,000 / 24.6	$12,195
Traditional IRA #2	$200,000	$200,000 / 24.6	$8,130
Total IRA RMD	—	—	$20,325

You could take the entire $20,325 from IRA #1, from IRA #2, or split between them.

RMD Timeline and Deadlines

First-Year RMD

For your first RMD, you have until April 1 of the year AFTER you turn the RMD age. But there's a catch...

The Two-RMD Year Problem

If you delay your first RMD to April 1, you'll have TWO RMDs in the same calendar year:

Scenario	Timeline	Tax Impact
Take first RMD by December 31 of age-73 year	One RMD in 2026, one in 2027	Spread over two years
Delay first RMD to April 1 following year	Two RMDs in 2027	Double income in one year

Example: The Tax Bracket Jump

Person with $600,000 IRA, turning 73 in 2026:

Approach	2026 RMD	2027 RMD	2027 Total
Take by Dec 31, 2026	$22,642	$22,000	$22,000
Delay to April 1, 2027	$0	$22,642 + $22,000	$44,642

Taking $44,642 in one year could push you into a higher tax bracket and increase Medicare premiums (IRMAA).

Annual Deadline

After your first RMD, all subsequent RMDs are due by December 31 of each year. No April 1 extension.

Key Dates for 2026

Situation	Deadline
First RMD (turned 73 in 2025)	April 1, 2026
2025 RMD (ongoing)	December 31, 2025
2026 RMD (ongoing)	December 31, 2026
First RMD (turning 73 in 2026)	April 1, 2027 (or Dec 31, 2026)

Penalties for Missing RMDs

The Excise Tax

If you fail to take your full RMD, you face an excise tax on the shortfall:

2023 and later: 25% penalty (reduced from 50%)
If corrected within 2 years: Penalty can be reduced to 10%

Example: Missed RMD Penalty

Required RMD: $20,000
Amount actually taken: $5,000
Shortfall: $15,000

Scenario	Penalty
Not corrected	$3,750 (25% of $15,000)
Corrected within 2 years	$1,500 (10% of $15,000)

How to Request Penalty Waiver

The IRS can waive the penalty if you show "reasonable cause":

Take the missed RMD as soon as you discover the error
File Form 5329 with your tax return
Attach a letter explaining the reasonable cause
Show steps taken to prevent future misses

Common reasonable causes: serious illness, natural disaster, incorrect advice from advisor, or administrative errors by custodian.

RMD Optimization Strategies

Strategy 1: Pre-RMD Roth Conversions

Convert Traditional IRA money to Roth before RMDs begin to:

Reduce future RMDs
Lower lifetime taxes (if converting in low-income years)
Avoid RMDs entirely on Roth money
Leave tax-free money to heirs

Conversion Strategy Example

Age	Traditional IRA	Convert to Roth	Future RMD Reduction
65	$800,000	$50,000	$2,000/year at 73
66	$750,000	$50,000	$2,000/year
67	$700,000	$50,000	$2,000/year
68-72	Continues...	$50,000/year	$2,000/year each

Converting $400,000 before RMDs reduces annual RMDs by approximately $16,000.

Strategy 2: Tax Bracket Management

Take larger distributions in low-income years:

Before Social Security starts
Before pension begins
Years with large deductions
Fill up lower tax brackets

Strategy 3: Aggregate IRAs Strategically

Since IRA RMDs can be taken from any IRA:

Take from the account with worst-performing investments
Simplify by emptying small accounts
Keep growth-oriented accounts intact longer

Strategy 4: Reinvest in Taxable Account

If you don't need RMD money:

Take the required distribution
Invest in a taxable brokerage account
Use tax-efficient investments (index funds, municipal bonds)

Future growth gets preferential capital gains rates instead of ordinary income rates.

Qualified Charitable Distribution (QCD)

The QCD is one of the most powerful RMD strategies for charitable givers.

How QCDs Work

Donate IRA funds directly to charity
Counts toward your RMD
Excluded from taxable income (not a deduction—even better)
Available starting at age 70½
Maximum $105,000 per year (2026, indexed for inflation)

QCD vs Regular Charitable Donation

Factor	Regular Donation	QCD
Process	Take RMD, pay tax, donate	Donate directly from IRA
Taxable income	RMD adds to AGI	Excluded from AGI
Deduction benefit	Only if itemizing	Works even with standard deduction
Medicare premium impact	Higher AGI may increase IRMAA	No AGI increase
Social Security taxation	Higher AGI = more SS taxed	No AGI increase

QCD Example

Person age 75 with $20,000 RMD, wants to donate $10,000 to charity:

Approach	Taxable Income	Tax (24% bracket)
Take RMD, donate cash (standard deduction)	$20,000	$4,800
QCD for $10,000, regular RMD for $10,000	$10,000	$2,400
Savings with QCD	—	$2,400

QCD Requirements

Must be 70½ or older (not 73)
Must go directly from IRA to charity (not through you)
Charity must be 501(c)(3) (not donor-advised funds)
Must be from IRA (not 401(k), 403(b), etc.)
Can't have received any non-deductible contributions in past

How to Execute a QCD

Contact your IRA custodian
Request a direct distribution to the charity
Provide charity's name, address, and EIN
Get written acknowledgment from charity
Report on Form 1040 (total IRA distribution, subtract QCD)

Your Action Plan

If You're Approaching Age 73

Calculate your estimated RMD using year-end balances
Consider pre-RMD Roth conversions in low-tax years
Decide whether to take first RMD by Dec 31 or delay to April 1
Set up automatic RMD distributions if your custodian offers
Consider QCDs if you're charitably inclined

If You're Already Taking RMDs

Confirm your RMD calculation is correct
Set a calendar reminder for annual deadline
Review if QCDs make sense for your situation
Consider taking more than the minimum in low-income years
Evaluate Roth conversions if you have room in your tax bracket

RMD Checklist

Task	Timing
Get prior year-end statements	January
Calculate current year RMD	January-February
Decide distribution timing	Anytime before deadline
Execute QCDs if applicable	Before December 31
Take remaining RMD	By December 31
Verify all RMDs completed	Early December

Key Numbers for 2026

Item	Amount
RMD starting age (born 1951-1959)	73
RMD starting age (born 1960+)	75
Penalty for missed RMD	25% (10% if corrected)
QCD annual limit	$105,000
QCD eligible age	70½

RMDs are an inevitable part of tax-deferred retirement accounts, but they don't have to be a burden. With proper planning—including pre-RMD Roth conversions, QCDs for charitable giving, and careful timing—you can minimize their tax impact and keep more of your retirement savings working for you.

This article is for informational purposes only and does not constitute tax, legal, or investment advice. RMD rules are complex and penalties are significant. Consult with a qualified tax professional or financial advisor for guidance specific to your situation.