RMD Rules require many retirement account owners to withdraw a minimum amount each year once they reach the applicable age. The calculation is mechanical, but the decisions around timing, taxes, account types, and inherited accounts are not. A missed deadline can create an excise tax, while an unnecessarily large distribution can increase taxable income, affect Medicare premiums, or push more income into a higher tax bracket.
This guide explains the 2026 rules in plain language. We will focus on the deadlines that matter, the math behind the required amount, when accounts can or cannot be combined, and planning options that may reduce future RMD pressure.
Table Of Contents
• When RMD Rules Start and When Payments Are Due
• Which Accounts Have RMDs and Which Can Be Combined
• Missed RMD Penalties and Ways To Reduce Future RMDs
When RMD Rules Start And When Payments Are Due
An RMD, or Required Minimum Distribution, is the minimum amount that must be withdrawn from certain retirement accounts each year. You may always take more than the minimum, but you generally cannot leave the required amount untouched. The IRS overview of required minimum distributions explains that the amount is based on account value and an IRS life expectancy factor.
For most people affected by the current rules, the starting age is 73. The longer term schedule matters, though: people born in 1960 or later generally have a starting age of 75. In 2026, someone who turns 73 was generally born in 1953 and will normally face a first RMD for 2026.
The First RMD Deadline Is Different
Your first RMD year is the year you reach the applicable age. Yet your first withdrawal may be delayed until April 1 of the following year.
For example, if you turn 73 during 2026 and the standard rules apply, you have two choices:
- Take your first RMD during 2026.
- Delay that first RMD until April 1, 2027.
The second option sounds simple, but it creates a catch. Your 2027 RMD is still due by December 31, 2027. Delaying the first payment can therefore put two taxable distributions into one calendar year.
Delaying the first RMD does not eliminate it. It can compress two years of taxable income into the next year.
Suppose your 2026 RMD is $28,000 and your 2027 RMD is $30,000. Taking both during 2027 could add $58,000 of ordinary taxable income to that year. That higher income may affect marginal tax brackets, capital gains taxation, deductions, and income related Medicare premium adjustments. The better choice depends on your broader income picture, not just the April 1 deadline.
The Still Working Exception Has Limits
A defined contribution plan, such as a 401(k), may allow a participant to postpone the first RMD until April 1 after retiring, rather than April 1 after reaching the RMD age. This is often called the still working exception. It applies only to the plan of the employer you still work for, and the plan must permit the delay.
The exception does not apply to IRAs. A traditional IRA owner who is still working must generally begin RMDs at the normal age.
It also does not generally help a person who owns more than 5% of the employer. A 5% owner usually must begin RMDs based on age even if still actively working. The Congressional Research Service summary of RMD rules describes this retirement based delay for eligible defined contribution plan participants.
A Practical First Year Decision
Consider taking the first RMD in the first RMD year when:
• Your following year may include a bonus, business sale, large capital gain, or other unusually high income.
• You want to avoid two RMDs in one tax year.
• You are concerned about Medicare income thresholds.
Consider the April 1 delay only after comparing both tax years. For instance, a retiree with little income in 2027 but substantial consulting income in 2026 may reasonably prefer the delay. The answer is not universal.
How To Calculate Your RMD
The standard RMD formula is straightforward:
Prior December 31 account balance ÷ applicable IRS life expectancy factor = RMD
For a 2026 RMD, start with the account value on December 31, 2025. Then divide that amount by the correct life expectancy divisor from the IRS tables.
The IRS RMD FAQ guidance confirms the basic calculation method and explains that treatment can vary by account type.
Use The Right Life Expectancy Table
Most IRA owners use the Uniform Lifetime Table. The table factor falls as you age, meaning the required percentage of the account generally rises over time.
| Age | Uniform Lifetime Table Divisor | Approximate Withdrawal Rate |
|---|---|---|
| 73 | 26.5 | 3.77% |
| 74 | 25.5 | 3.92% |
| 75 | 24.6 | 4.07% |
| 80 | 20.2 | 4.95% |
| 85 | 16.0 | 6.25% |
| 90 | 12.2 | 8.20% |
The withdrawal rate is only an approximation because your actual RMD depends on the year end account balance. A market decline can reduce the dollar RMD even as your age based percentage rises. A strong market year can produce the opposite result.
Worked Example: Age 73
Assume your traditional IRA was worth $530,000 on December 31, 2025. If you are age 73 in 2026 and use the Uniform Lifetime Table:
- Prior year end balance: $530,000
- Age 73 divisor: 26.5
- Calculation: $530,000 ÷ 26.5 = $20,000
Your 2026 RMD would be $20,000. If you withdraw $25,000, the additional $5,000 is allowed. It is generally taxable in the same way as the required portion unless the account contains after tax basis.
Worked Example: Age 85
Now assume a different account holder is age 85 with a December 31 balance of $640,000:
- Prior year end balance: $640,000
- Age 85 divisor: 16.0
- Calculation: $640,000 ÷ 16.0 = $40,000
Even though the account is not dramatically larger, the RMD is much higher because the divisor is lower. This is why waiting until RMDs begin to consider tax strategy can be limiting.
The Younger Spouse Rule
There is one major exception to the Uniform Lifetime Table. If your spouse is your sole primary beneficiary for the entire year and is more than 10 years younger than you, you generally use the Joint Life and Last Survivor Expectancy Table instead. That table produces a larger divisor and usually a smaller RMD.
This rule is not automatic merely because you have a younger spouse. Beneficiary designations matter. The IRS Publication 590-B guidance for IRA distributions includes the applicable worksheets, tables, and IRA custodian reporting rules.
Your IRA custodian must generally either provide the RMD amount or offer to calculate it. Treat that figure as a useful checkpoint, not a substitute for reviewing beneficiary details, prior year distributions, and accounts held elsewhere.
Explore how different [tax-advantaged retirement savings accounts can affect the timing and taxation of retirement withdrawals.]
Which Accounts Have RMDs And Which Can Be Combined
RMD Rules apply to most tax deferred retirement accounts. They generally include traditional IRAs, rollover IRAs, SEP IRAs, SIMPLE IRAs, 401(k) plans, 403(b) plans, governmental 457(b) plans, and similar defined contribution plans.
Roth treatment is different. Original owners of Roth IRAs do not have lifetime RMDs. Beginning in 2024, original owners of designated Roth accounts in workplace plans, such as Roth 401(k) accounts, also generally do not have lifetime RMDs. Beneficiaries can still face distribution rules after inheritance.
IRA Aggregation Can Simplify Withdrawals
If you own multiple traditional IRAs, you generally calculate the RMD separately for each IRA. After calculating each amount, you may total them and take the combined amount from one IRA or any combination of your traditional IRAs.
For example:
| Account | Separate RMD Calculation | Distribution Actually Taken |
|---|---|---|
| Traditional IRA A | $7,500 | $15,000 |
| Traditional IRA B | $7,500 | $0 |
| Total | $15,000 | $15,000 |
In this example, the total IRA RMD is satisfied. The flexibility can be useful when one IRA holds investments you do not want to sell immediately.
Aggregation is not a free pass to combine every retirement account. IRA categories and inherited IRA rules can differ. SEP and SIMPLE IRA aggregation may be permitted under applicable IRA rules, but inherited IRA distributions should be reviewed separately because beneficiary status and inherited account rules can change the result.
Why 401(k) RMDs Usually Stay Separate
A 401(k) RMD is generally calculated and taken from that specific plan. You typically cannot satisfy a 401(k) RMD by withdrawing extra money from an IRA.
That distinction becomes costly when people have several old employer plans. A $12,000 IRA withdrawal does not cover a $12,000 RMD due from a former employer’s 401(k). The IRS comparison chart for IRA and defined contribution plan RMDs outlines the different timing, calculation, and penalty treatment for these account categories.
Before combining distributions, separate your accounts into practical buckets:
• Traditional, SEP, and SIMPLE IRAs.
• Current employer plan accounts.
• Former employer plan accounts.
• Inherited IRAs and inherited workplace plans.
• Roth accounts.
This account map prevents the common mistake of meeting a total withdrawal goal while missing an RMD from a specific plan.
Inherited Accounts Follow A Different Clock
Inherited retirement accounts have their own rules, and the original owner’s death date matters. For many designated beneficiaries subject to the 10 year rule, the account must be fully distributed by the end of the tenth year after death.
The timing inside that 10 year period can differ:
• If the original owner died before the required beginning date, a beneficiary may generally have no annual RMD for years one through nine, but must empty the account by the end of year 10.
• If the original owner died on or after the required beginning date, annual beneficiary RMDs may apply during years one through nine, along with full distribution by year 10.
Eligible designated beneficiaries, including surviving spouses, certain minor children, disabled or chronically ill individuals, and beneficiaries not more than 10 years younger than the owner, can have different options. Inherited account rules are technical enough that beneficiaries should verify the account type, death year, beneficiary category, and prior distributions before acting.
Missed RMD Penalties And Ways To Reduce Future RMDs
If you take less than the required amount, the shortfall may be subject to a 25% excise tax. The rate can drop to 10% if the error is corrected within the applicable correction window, generally by taking the missed amount and addressing the issue on a timely filed tax return. The IRS explanation of RMD timing and shortfall penalties provides the core comparison and penalty framework.
Do not assume a late distribution automatically fixes everything. Keep records of the calculation, the missed amount, the correction date, and relevant account statements. Form 5329 is commonly used to report an additional tax and request relief when appropriate.
A Recovery Workflow If You Missed One
- Confirm the required amount using the correct prior year balance and table.
- Withdraw the missed amount as soon as the error is identified.
- Retain statements and calculation records.
- Review Form 5329 instructions and consider professional tax guidance if the amount is material or the account is inherited.
- Set next year’s distribution plan early rather than waiting until December.
3 Ways To Manage Future RMDs
There is no universal way to reduce RMDs. Each option has a different purpose, tax cost, and eligibility rule.
| Strategy | What It Can Do | When It May Fit | Important Tradeoff |
|---|---|---|---|
| Qualified Charitable Distribution | Can satisfy current IRA RMD with a direct charitable gift | You are age 70½ or older and already give to eligible charities | The payment must go directly from the IRA to the charity |
| Qualified Longevity Annuity Contract | May exclude qualifying funds from the RMD calculation until later | You value future income and can accept reduced liquidity | Contract limits, costs, and income terms require review |
| Roth Conversion | Can reduce future pre tax account balances and future RMDs | You can pay conversion tax and expect a long planning horizon | Conversion income may raise taxes and Medicare costs now |
A Qualified Charitable Distribution, or QCD, does not reduce the account balance in the same way a Roth conversion does, but it can satisfy some or all of the current year’s IRA RMD without including the transferred amount in taxable income when rules are met. It is most useful for charitably inclined IRA owners who do not need the distribution for spending.
A QLAC can defer RMD treatment on qualifying assets placed into the contract until distributions begin later. This is more of an income and longevity tool than a simple tax maneuver. It may not fit someone who needs liquidity or wants maximum investment control.
A Roth conversion moves money from a traditional account to a Roth account and generally creates taxable income in the conversion year. Future Roth IRA withdrawals that meet the rules may be tax free, and Roth IRA balances are not subject to lifetime RMDs for the original owner. Fair warning: an RMD due for the current year must generally be taken first; it cannot be converted to Roth.
Roth conversions are often more workable before RMDs begin, during lower income years, or when a household has enough cash outside the IRA to pay the tax. Coordinated retirement planning can help compare the immediate tax bill against future RMDs, expected income needs, and legacy goals.
Key Takeaways
• Most people subject to current RMD Rules begin at age 73, while people born in 1960 or later generally begin at 75.
• Your first RMD can usually be delayed until April 1 of the following year, but that can create two taxable RMDs in one year.
• Calculate the distribution using the prior December 31 account balance and the correct IRS life expectancy divisor.
• Traditional IRA RMDs can often be aggregated, but 401(k) RMDs generally must be taken from each plan separately.
• A missed RMD can trigger a 25% excise tax, potentially reduced to 10% when corrected in time.
• QCDs, QLACs, and Roth conversions may help manage current or future RMD exposure, but each involves eligibility and tradeoffs.
FAQ: RMD Rules
What Is An RMD?
An RMD is the minimum withdrawal the IRS requires from many tax deferred retirement accounts after you reach the applicable age. The distribution is generally taxable as ordinary income unless part of it reflects after tax basis or another exception applies.
When Do RMDs Start In 2026?
For people who turn 73 in 2026, the first RMD is for 2026. It can generally be taken during 2026 or delayed until April 1, 2027. People born in 1960 or later generally have a later starting age of 75.
Do I Have To Take An RMD From Every Retirement Account?
You must calculate requirements for each account, but traditional IRA RMDs can often be aggregated and withdrawn from one or more traditional IRAs. Workplace plan RMDs, especially 401(k) RMDs, generally must be satisfied from the specific plan.
Which Accounts Are Exempt From Lifetime RMDs?
Original Roth IRA owners do not have lifetime RMDs. Original owners of Roth accounts in employer plans also generally do not have lifetime RMDs under current law. Traditional IRAs and most pre tax workplace plans remain subject to RMD Rules.
What If My Spouse Is More Than 10 Years Younger?
If your spouse is your sole beneficiary for the full year and is more than 10 years younger, you generally use the IRS Joint Life and Last Survivor Expectancy Table. This often lowers the annual RMD compared with the Uniform Lifetime Table.
Can I Take More Than My RMD?
Yes. You may withdraw more than the required minimum. The extra amount generally does not count toward next year’s RMD, however, because each year’s requirement is calculated separately from the prior year end balance and applicable factor.
Are Inherited IRAs Subject To Different Rules?
Yes. Beneficiaries may face a 10 year distribution deadline, annual distribution requirements, or special treatment based on beneficiary status. Whether the original owner died before or after the required beginning date can affect whether annual withdrawals are required before the tenth year.
Sources/References
• IRS — Retirement topics – Required minimum distributions (RMDs): https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-required-minimum-distributions-rmds
• IRS — Retirement plan and IRA required minimum distributions FAQs: https://www.irs.gov/retirement-plans/retirement-plan-and-ira-required-minimum-distributions-faqs
• IRS — Publication 590-B (2025), Distributions from Individual Retirement Arrangements: https://www.irs.gov/publications/p590b
• IRS — RMD comparison chart (IRAs vs. defined contribution plans): https://www.irs.gov/retirement-plans/rmd-comparison-chart-iras-vs-defined-contribution-plans
• Congressional Research Service — Required Minimum Distribution Rules: https://www.congress.gov/crs_external_products/IF/HTML/IF12750.html