RMDs in 2026: Ages, Deadlines, and the Planning Window Before They Start

Required minimum distributions are the point where the tax deferral on retirement accounts ends and the IRS starts collecting. They're also the single most predictable event in a retirement plan, which makes it odd how often they show up as a surprise. This guide covers the rules as they stand in 2026 and, more to the point, what to do in the years before they kick in.

Who must take them, and when

If you were born between 1951 and 1959, your RMDs begin in the year you turn 73. Born in 1960 or later, they begin at 75. The change comes from the SECURE 2.0 Act and phases in on that birth-year line.

RMDs apply to traditional IRAs, SEP and SIMPLE IRAs, 401(k)s, 403(b)s, and governmental 457(b) plans. Roth IRAs have no required distributions during the owner's life. Since 2024, Roth 401(k) and Roth 403(b) accounts are exempt too, which took away the old reason to roll them into a Roth IRA before RMD age.

One common exception: if you're still working at 73 and don't own more than 5% of the employer, RMDs from that employer's plan can wait until you retire. That doesn't extend to IRAs or to plans from former employers.

The first-year choice

Your first RMD is due by April 1 of the year after you reach the starting age. Every later one is due by December 31. Taking that first distribution in the grace period sounds appealing, and it's usually a mistake, because the second RMD is still due by December 31 of the same year and now you've got two distributions in one tax year. For most people, take the first RMD in the year you reach the age and be done with it.

How the amount is calculated

The RMD for a year is the account balance on December 31 of the prior year divided by a life-expectancy factor from the IRS Uniform Lifetime Table. At 73 the factor is 26.5, so the distribution is about 3.8% of the balance. At 80 it's 20.2, about 5%. At 85 it's 16.0, about 6.3%. At 90 it's 12.2, over 8%. The percentage climbs every year. That's by design.

Someone with $1.5 million in traditional IRAs at 73 has to withdraw about $56,600 in the first year. If the accounts grow, the dollar amount grows with them even as the divisor shrinks. Couples with several million in tax-deferred accounts can face six-figure mandatory income every year in their eighties, stacked on Social Security and pensions, whether or not they need the money.

If you have several IRAs, you calculate the RMD for each and can take the total from any one or combination of them. 401(k) RMDs have to come from each plan separately. A spouse more than ten years younger who's the sole beneficiary uses a different table with smaller RMDs.

The penalty

Miss an RMD, in whole or in part, and there's a 25% excise tax on the amount not taken, reduced to 10% if you fix it within two years. That's down from the old 50%, but it's still one of the harshest penalties in the code. The IRS will often waive it for reasonable cause with a Form 5329 and a letter. The better plan is a calendar.

Why the planning happens before 73

Two things set the size of your RMDs: the balance in tax-deferred accounts when they begin, and the brackets you land in when the income arrives. Both get decided in the years before, not after.

Reduce the balance deliberately. Every dollar moved from a traditional IRA to a Roth before RMD age is a dollar that never produces a required distribution, never raises Medicare premiums, and passes to heirs tax-free. The years between retirement and 73 are the window, and the Roth conversion decision is the main tool. Spending from the IRA in those years, instead of spending down taxable accounts first, does the same thing; see which account to draw from first.

Stack the income knowingly. RMDs land on top of Social Security, which makes more of the benefit taxable, and on top of pension income. Someone who delays Social Security to 70 and then starts RMDs at 73 has a three-year gap between the two, followed by a jump. A projection that shows the whole path makes the size of the problem visible while there's still time to shrink it.

Watch Medicare. RMD income two years earlier sets the IRMAA surcharge, and a couple whose RMDs push modified AGI over $218,000 (the 2026 first tier) pays more for Medicare every year for the rest of their lives. The IRMAA thresholds are a hard constraint on how big a tax-deferred balance should be allowed to get.

Once they begin

Even after 73, there's still planning to do.

Qualified charitable distributions. From 70½, you can send up to $111,000 a year in 2026 directly from an IRA to charity. It counts toward the RMD and is excluded from income entirely, which beats a deduction. If you give to charity at all, the IRA becomes the giving account. See qualified charitable distributions.

Withholding. An RMD can carry federal withholding at whatever rate you choose, and withholding is treated as paid evenly through the year no matter when it happens. A December RMD with heavy withholding can cover the tax on a whole year of other income and replace estimated payments. This is one of our favorite small tricks.

Reinvest what you don't spend. An RMD is a required withdrawal, not required spending. Money you don't need goes into the taxable account and stays invested. The tax is the same either way.

Time it within the year. Taking the RMD early removes market risk on the required amount; taking it late allows more deferral. We generally take it after the year's income picture is clear, alongside the other year-end moves.

Inherited accounts are different

Beneficiaries follow their own rules, and since 2020 most non-spouse beneficiaries must empty an inherited IRA within ten years. If the original owner had already begun RMDs, the beneficiary also has to take annual distributions during those ten years. The 10-year rule has its own guide, and it's one of the strongest reasons to convert or draw down a large IRA during your own lifetime rather than hand the tax bill to children in their peak earning years.

We build the RMD projection into every retirement income plan. The decisions that shrink the distributions get made a decade before they start, and there's no way to make them later.

Frequently asked questions

Joseph G. Valerio, CFP®, EAFounder and Lead Advisor at Valerio Wealth Management, a fee-only, fiduciary virtual family office in Miami, Florida. One advisor, credentialed in both financial planning and federal tax. About Joseph

This article is general education, not individualized advice, and it is not tax, legal, or accounting advice. Figures reflect federal law for the year stated and can change. Valerio Wealth Management does not prepare or file tax returns. Speak with a qualified professional about your own situation before acting.