Required Minimum Distribution: 2026 RMD Guide

Everything you need to know about required minimum distributions from retirement accounts in 2026, including calculation methods, deadlines, penalties, and tax-saving strategies.

What Is a Required Minimum Distribution?

A Required Minimum Distribution (RMD) is the minimum amount that must be withdrawn from a tax-deferred retirement account each year, starting at a specified age. RMDs apply to traditional IRAs, SEP IRAs, SIMPLE IRAs, 401(k)s, 403(b)s, 457(b)s, and other defined contribution plans. The purpose of RMDs is to ensure that taxpayers do not accumulate retirement savings indefinitely without paying income tax on the deferred amounts. The SECURE 2.0 Act of 2022 increased the RMD age from 72 to 73 starting in 2023, and it is scheduled to increase again to 75 starting in 2033.

For 2026, taxpayers who have reached age 73 must take their RMD by December 31 of the year, except for the first year, when the deadline is April 1 of the following year. For example, a taxpayer who turns 73 in 2026 must take their first RMD by December 31, 2026, or they can delay it until April 1, 2027. However, if they delay the first RMD, they must take two RMDs in 2027, which could push them into a higher tax bracket. The RMD amount is calculated using the account balance as of December 31 of the prior year, divided by the life expectancy factor from the IRS Uniform Lifetime Table.

Who Must Take RMDs in 2026?

In 2026, RMDs are required for taxpayers who have reached age 73 by the end of the year. This includes taxpayers who turned 73 in 2026, as well as those who turned 73 in prior years and have not yet taken their RMD for 2026. The age threshold is based on the taxpayer's age as of December 31 of the tax year. For example, a taxpayer who was born on July 1, 1953, would turn 73 on July 1, 2026, and would be required to take an RMD for 2026. A taxpayer who was born on January 1, 1954, would not turn 73 until January 1, 2027, and would not be required to take an RMD for 2026.

It is important to note that RMDs are based on the taxpayer's age, not on whether they are still working. Even if a taxpayer is still employed and contributing to a 401(k) or other employer-sponsored plan, they must still take RMDs from their traditional IRAs and other retirement accounts. However, there is an exception for current employees who participate in a 401(k) or other employer-sponsored plan: they may be able to delay RMDs from that specific plan until after they retire, provided they do not own more than 5 percent of the company. This exception does not apply to IRAs or to plans from former employers.

How to Calculate Your RMD for 2026

The RMD calculation is relatively straightforward. First, determine the account balance as of December 31 of the prior year. For example, for the 2026 RMD, you would use the account balance as of December 31, 2025. Second, find the life expectancy factor from the IRS Uniform Lifetime Table based on your age as of December 31 of the current year. For example, if you are 73 in 2026, your life expectancy factor is 26.5. Third, divide the account balance by the life expectancy factor to determine the RMD amount. For example, if your account balance is $500,000 and your life expectancy factor is 26.5, your RMD would be $18,867.92.

The IRS Uniform Lifetime Table is the most commonly used table for RMD calculations, but there are other tables that may apply in certain situations. The Joint Life and Last Survivor Expectancy Table is used when the sole beneficiary of the account is the taxpayer's spouse and the spouse is more than 10 years younger than the taxpayer. The Single Life Expectancy Table is used for certain beneficiaries who inherit retirement accounts. Taxpayers who are unsure about which table to use should consult a tax professional or refer to IRS Publication 590-B, Distributions from Individual Retirement Arrangements, for detailed guidance on RMD calculations.

RMD Deadlines for 2026

The deadline for taking your RMD in 2026 is December 31, 2026, for most taxpayers. However, there is an exception for the first RMD: taxpayers who turn 73 in 2026 can delay their first RMD until April 1, 2027. This is known as the "required beginning date" extension. If you choose to delay your first RMD until April 1, 2027, you must take two RMDs in 2027: the delayed 2026 RMD and the 2027 RMD. This could result in a higher tax liability for 2027, as both distributions would be included in your taxable income for that year.

For subsequent years, the RMD deadline is December 31 of each year. For example, if you delay your first RMD until April 1, 2027, your second RMD for 2027 must be taken by December 31, 2027. It is important to plan ahead for RMDs, as failing to take the full amount by the deadline results in a penalty of 25 percent on the amount not withdrawn. The penalty is reduced to 10 percent if the missed RMD is corrected promptly, generally within two years. Taxpayers who miss an RMD should file Form 5329 with their tax return to report the missed distribution and request a waiver of the penalty.

Penalties for Missing an RMD in 2026

The penalty for failing to take a required minimum distribution is one of the harshest penalties in the tax code. For 2026, the penalty is 25 percent of the amount that should have been withdrawn but was not. For example, if your RMD is $20,000 and you fail to take it, the penalty would be $5,000. The penalty is reduced to 10 percent if the missed RMD is corrected promptly, generally within two years of the missed deadline. To correct a missed RMD, you must withdraw the full amount of the missed distribution and file Form 5329 with your tax return, requesting a waiver of the penalty.

The IRS may waive the penalty if the missed RMD was due to reasonable error and you are taking steps to correct the mistake. Reasonable error includes relying on incorrect information from a financial advisor or plan administrator, illness, or other circumstances beyond the taxpayer's control. To request a waiver, you must file Form 5329 and attach a letter explaining the reason for the missed RMD and the steps you have taken to correct it. The IRS will review the request and determine whether the penalty should be waived. Taxpayers who are concerned about missing an RMD should consult a tax professional as soon as possible to minimize the penalty.

Strategies to Minimize RMD Taxes

There are several strategies taxpayers can use to minimize the tax impact of RMDs. One strategy is to start taking distributions before the RMD age, which can reduce the account balance and lower the RMD amount in future years. For example, a taxpayer who starts taking distributions at age 65 instead of waiting until age 73 may be able to reduce the account balance significantly, resulting in lower RMDs and a lower tax liability. Another strategy is to convert a traditional IRA to a Roth IRA, which eliminates RMDs during the taxpayer's lifetime. However, the conversion is taxable, so the tax implications must be carefully considered.

Other strategies include using qualified charitable distributions (QCDs) to satisfy RMDs, which allows taxpayers to donate up to $105,000 per year directly from their IRA to a qualified charity without including the distribution in taxable income. This strategy is particularly valuable for taxpayers who do not need the RMD for living expenses and who want to reduce their taxable income. Additionally, taxpayers can consider the timing of other income sources, such as capital gains or Social Security benefits, to minimize the overall tax impact of RMDs. Consulting a tax professional can help taxpayers develop a personalized strategy to minimize RMD taxes.

RMDs for Inherited Retirement Accounts

The rules for inherited retirement accounts changed significantly with the SECURE Act of 2019 and the SECURE 2.0 Act of 2022. For most non-spouse beneficiaries who inherit a retirement account from someone who died after 2019, the entire account must be distributed within 10 years of the original owner's death. This 10-year rule applies regardless of whether the original owner had started taking RMDs. There is no annual RMD requirement during the 10-year period, but the entire account balance must be distributed by the end of the 10th year.

There are exceptions to the 10-year rule for certain eligible designated beneficiaries, including surviving spouses, minor children of the original owner, disabled or chronically ill individuals, and individuals who are not more than 10 years younger than the original owner. These eligible designated beneficiaries can stretch the distributions over their own life expectancy, which can provide significant tax benefits. Surviving spouses have additional options, including treating the inherited IRA as their own or rolling it over into their own IRA. Taxpayers who inherit retirement accounts should consult a tax professional to understand the specific rules that apply to their situation and develop a distribution strategy that minimizes taxes.

RMDs and Social Security Benefits

RMDs can have a significant impact on the taxation of Social Security benefits. For 2026, Social Security benefits may be taxable if your combined income (adjusted gross income plus nontaxable interest plus half of your Social Security benefits) exceeds certain thresholds. For single filers, benefits may be taxable if combined income exceeds $25,000, and for married couples filing jointly, the threshold is $32,000. RMDs are included in adjusted gross income, so they can increase the amount of Social Security benefits that are subject to tax.

For example, a single filer with $20,000 in adjusted gross income and $10,000 in Social Security benefits would have combined income of $25,000, which is at the threshold. If the taxpayer also has a $10,000 RMD, their combined income would increase to $35,000, and a larger portion of their Social Security benefits would be taxable. Taxpayers who are receiving Social Security benefits and are subject to RMDs should carefully plan their distributions to minimize the overall tax impact. Strategies such as qualified charitable distributions or Roth conversions can help reduce the taxable income and the taxation of Social Security benefits.

Planning for RMDs in 2026 and Beyond

Planning for RMDs is an essential part of retirement tax planning. Taxpayers who are approaching the RMD age should start planning several years in advance to develop a strategy that minimizes taxes and maximizes the value of their retirement savings. This planning should include a review of all retirement accounts, an estimate of future RMD amounts, and an analysis of the tax impact of those distributions. Additionally, taxpayers should consider the interaction between RMDs and other sources of retirement income, such as Social Security benefits, pensions, and investment income.

Looking ahead to 2027, the RMD age is scheduled to increase to 75 starting in 2033, which means that taxpayers who are currently in their 60s and 70s will have more time before they are required to start taking RMDs. However, the rules for inherited retirement accounts may change, and there is always the possibility of legislative changes that could affect RMD requirements. Taxpayers should stay informed about legislative developments and consult a tax professional regularly to ensure that their retirement plan is on track. Proper planning can help taxpayers minimize taxes, avoid penalties, and make the most of their retirement savings.

RMDs for Multiple Retirement Accounts

Taxpayers who have multiple retirement accounts must calculate and take RMDs from each account separately, though there are some exceptions. For 2026, if you have multiple traditional IRAs, you can calculate the RMD for each IRA separately and then take the total RMD from any one or more of the IRAs. This flexibility allows taxpayers to choose which accounts to draw from, which can be useful for managing taxes and investment strategies. However, if you have multiple 401(k) plans or other employer-sponsored plans, you must calculate and take the RMD from each plan separately. You cannot aggregate RMDs from different employer-sponsored plans.

For inherited retirement accounts, the rules are different. If you inherit multiple IRAs from the same decedent, you can aggregate the RMDs and take the total from any one or more of the inherited IRAs. However, if you inherit IRAs from different decedents, you must calculate and take separate RMDs for each inherited IRA. Additionally, if you inherit a 401(k) or other employer-sponsored plan, the RMD rules for inherited accounts may differ from those for IRAs. Taxpayers who have multiple retirement accounts should carefully track the RMD requirements for each account and consult a tax professional if they are unsure about the rules.

Frequently Asked Questions