Required Minimum Distributions (RMD) 2026: Starting Age, Tables, Penalties, and SECURE 2.0 Changes

Required Minimum Distributions (RMDs) are the IRS-mandated minimum withdrawals you must take from your tax-deferred retirement accounts each year. For 2026, the RMD landscape has shifted significantly due to the SECURE 2.0 Act, which raised the starting age for RMDs from 72 to 73. This guide covers the 2026 RMD rules in detail — including starting age, calculation methods, penalties, and strategies to minimize their impact on your retirement income and tax liability.

Table of Contents

1. Core Framework: RMD Basics in 2026
2. 2026 Data: Starting Age, Tables, and Calculation
3. Real Examples: RMD Calculations at Different Ages
4. Strategies: Minimizing RMD Impact
5. Frequently Asked Questions
6. Bottom Line

Core Framework: RMD Basics in 2026

What Accounts Require RMDs?

RMDs apply to all tax-deferred retirement accounts: traditional IRAs, SEP IRAs, SIMPLE IRAs, 401(k) plans, 403(b) plans, and 457(b) plans (except for 457(b) accounts where the account owner is still working). Roth IRAs are exempt from RMDs during the owner's lifetime — one of their key advantages. Roth 401(k) accounts are also subject to RMDs, but the Roth portion is tax-free.

The RMD rules exist to ensure that tax-deferred retirement savings are eventually taxed. The IRS doesn't want taxpayers indefinitely deferring taxation on these accounts. RMDs are calculated to deplete the account over your life expectancy, ensuring the government collects its tax revenue within a reasonable timeframe.

How SECURE 2.0 Changed RMDs for 2026

The SECURE 2.0 Act, signed into law in late 2022, made significant changes to RMD rules. The most impactful change was raising the RMD starting age. For individuals who turned 72 before January 1, 2023, the old rule applied (RMDs starting at 72). For individuals who turned 72 on or after January 1, 2023, the starting age is 73. In the future, the starting age will rise to 75 (born 1960 or later), but that change hasn't taken effect yet in 2026.

2026 Data: Starting Age, Tables, and Calculation

RMD Starting Age for 2026

In 2026, RMDs must begin at age 73 for anyone born between 1951 and 1959. If you turned 73 in 2026, you must take your first RMD by April 1, 2027 (you can delay the first year's distribution until April 1 of the following year). Subsequent RMDs must be taken by December 31 of each year. If you're still working at 73 and have a 401(k) plan with your current employer, you may be eligible for a 'still-working exception' that delays RMDs until you retire (this exception doesn't apply to IRAs).

RMD Calculation Tables

RMDs are calculated using IRS life expectancy tables. The two primary tables are:

• •<strong>Uniform Lifetime Table:</strong> Used for most RMD calculations when the sole beneficiary is a spouse within 10 years of age or there are multiple beneficiaries. This is the most commonly used table.
• •<strong>Joint Life Expectancy Table:</strong> Used when the sole beneficiary is a spouse who is more than 10 years younger than the account owner. This table provides a longer life expectancy, resulting in smaller RMDs.

2026 Uniform Lifetime Table (Ages 73-95)

Here are the key life expectancy factors from the 2026 Uniform Lifetime Table:

• •<strong>Age 73:</strong> Factor = 26.5 (divide account balance by 26.5)
• •<strong>Age 75:</strong> Factor = 24.6
• •<strong>Age 80:</strong> Factor = 20.7
• •<strong>Age 85:</strong> Factor = 16.7
• •<strong>Age 90:</strong> Factor = 12.2
• •<strong>Age 95:</strong> Factor = 7.7

The RMD calculation is straightforward: take the fair market value of your account on December 31 of the previous year, and divide it by the life expectancy factor for your age. For example, a 73-year-old with a $500,000 IRA must withdraw $500,000 ÷ 26.5 = $18,868 in their first RMD year.

Real Examples: RMD Calculations at Different Ages

Example 1: Age 73, $500,000 Traditional IRA

RMD = $500,000 ÷ 26.5 = $18,868. This amount is taxable as ordinary income. If the account grew to $520,000 by the end of the year (after the RMD), the following year's RMD (age 74) would be calculated on $520,000 ÷ 25.5 = $20,392.

Example 2: Age 75, $1,000,000 401(k)

RMD = $1,000,000 ÷ 24.6 = $40,650. For someone in the 24% tax bracket, this RMD generates approximately $9,756 in federal tax. If the account is partially Roth (Roth 401(k)), only the traditional portion is taxable.

Example 3: Married Couple with Spousal Beneficiary >10 Years Younger

A 73-year-old with a $1.5 million IRA and a spouse who is 55 (18 years younger). They use the Joint Life Expectancy Table, which provides a factor of 30.9 at age 73 (for a beneficiary 18 years younger). RMD = $1,500,000 ÷ 30.9 = $48,544. Compare this to the Uniform Lifetime Table amount: $1,500,000 ÷ 26.5 = $56,604. The spousal exception saves $8,060 in the first year alone.

Use our retirement calculator to project your RMDs across different ages and account balances.

Strategies: Minimizing RMD Impact

While you can't avoid RMDs entirely (except by using Roth accounts), these strategies can minimize their tax impact:

1. <strong>Roth conversions before RMD age.</strong> Convert traditional IRA/401(k) assets to a Roth IRA in the years before RMDs start (ages 65-73). This increases your tax in the conversion year but eliminates RMDs on the converted amount. See our Roth conversion ladder guide for details.
2. Qualified Charitable Distributions (QCDs).</strong> Once you reach 73, you can donate up to $105,000/year (2026 limit) directly from your IRA to a qualified charity. This donation counts toward your RMD and is excluded from your taxable income. For charitably inclined retirees, this is the most tax-efficient way to satisfy RMDs.
3. Aggregate RMDs across accounts.</strong> You must calculate RMDs separately for each account, but you can aggregate withdrawals across all accounts of the same type (IRAs must be aggregated separately from 401(k)s). This gives you flexibility in choosing which accounts to draw down first.
4. Use a Roth 401(k) if available.</strong> If your employer offers a Roth 401(k) option, contributing to it means that portion of your 401(k) won't be taxable when RMDs are required. The RMD amount is calculated on the total account balance, but only the traditional portion is taxable.
5. Consider a lifetime income annuity.</strong> Using a portion of your IRA to purchase a qualified longevity annuity contract (QLAC) can reduce your RMD. The QLAC is excluded from the account balance used to calculate RMDs, and the annuity payments start at a later age (typically 85).
6. Delay taking RMDs until April 1.</strong> For your first RMD year, you have until April 1 of the following year to withdraw. This gives you extra time to plan and potentially allows you to wait until after you turn 73 to take the first distribution (if you turned 73 early in the year).

Frequently Asked Questions

<strong>What's the penalty for not taking an RMD?</strong> The penalty is 25% of the amount that should have been withdrawn but wasn't. For example, if your RMD is $20,000 and you only withdraw $5,000, the penalty is 25% × $15,000 = $3,750. This penalty can be waived if you can demonstrate a reasonable cause. The penalty was reduced from 50% to 25% by the SECURE 2.0 Act.

<strong>Do I have to take RMDs from inherited IRAs?</strong> Yes. Inherited IRAs have different RMD rules depending on when the original account owner passed away: if they died before RMD starting age, you have 10 years to withdraw the entire balance (10-year rule); if they died after RMD starting age, you take RMDs over your life expectancy or 10 years, whichever is longer. Spouses have special treatment — they can roll over the inherited IRA to their own IRA and delay RMDs until their own RMD age.

<strong>Can I contribute to an IRA after starting RMDs?</strong> Yes, as long as you have earned income (compensation). You can contribute up to $7,000 ($8,000 if 50+) in 2026, even while taking RMDs. However, you cannot offset your RMD with new contributions — the RMD is calculated on the account balance at year-end, including new contributions.

<strong>Do Roth 401(k)s have RMDs?</strong> Yes, Roth 401(k) accounts are subject to RMDs, but the distributed amount is tax-free (since contributions were already taxed). The RMD is calculated on the total account balance, and since it's a Roth, no tax is owed on the distribution. This is different from Roth IRAs, which have no RMDs during the owner's lifetime.

<strong>How do I calculate my RMD if I have multiple beneficiaries?</strong> If you have multiple beneficiaries (e.g., your spouse and children), you use the Uniform Lifetime Table based on the age of the oldest beneficiary (typically your spouse). The factor is based on the oldest beneficiary's age. If the beneficiaries are more than 10 years apart in age, you may still use the Uniform Lifetime Table — the Joint Life Table only applies when there's a single beneficiary who is more than 10 years younger.

<strong>Can I reinvest my RMD?</strong> Yes, you can reinvest RMD proceeds into any investment account (taxable brokerage, Roth IRA if you qualify, etc.). The RMD amount is still taxable income in the year of withdrawal, but the growth in the new account is treated according to that account's tax rules. You cannot reinvest an RMD back into the same tax-deferred account.

Bottom Line

RMDs are a mandatory part of retirement for anyone with tax-deferred accounts. In 2026, the RMD starting age is 73 (SECURE 2.0), with calculations based on the Uniform Lifetime Table and a 25% penalty for non-compliance. The key strategies to minimize RMD impact are: Roth conversions before age 73, QCDs for charitably inclined retirees, and proper account aggregation. Planning for RMDs should begin in your 60s, not at age 73 — the earlier you start converting to Roth, the lower your RMDs will be.

Use our retirement calculator to project your RMDs and plan your conversion strategy, and explore our Roth conversion ladder guide for a step-by-step approach to reducing future RMDs.

<strong>Disclaimer:</strong> The content provided on CompoundFig is for educational and informational purposes only and does not constitute financial, tax, legal, or investment advice. All calculations and projections are hypothetical and based on assumed rates of return, which may not reflect actual market conditions. Individual results will vary. Federal and state tax laws are subject to change, and the information presented may not reflect your specific tax situation. Consult with a qualified financial advisor, tax professional, or attorney before making any decisions based on this content. CompoundFig does not provide personalized financial recommendations.