RMD Rules for 2026: What Changed with SECURE 2.0 and What You Need to Do Now
Quick Answer
In 2026, required minimum distributions (RMDs) begin at age 73 for people born between 1951 and 1959. The SECURE 2.0 Act made several changes: the miss penalty dropped from 50% to 25% (10% if corrected within two years), Roth 401(k)s no longer require RMDs, and the RMD age will increase to 75 for those born in 1960 or later. If you turned 73 in 2025, your first RMD deadline is April 1, 2026.
If you turn 73 in 2026, your first deadline is April 1, 2027. The RMD amount is calculated by dividing your December 31 account balance by an IRS life expectancy factor.
Key Takeaways
- 1 The RMD age is 73 in 2026 for anyone born between 1951 and 1959. If you were born in 1960 or later, your RMD age will be 75 starting in 2033 1.
- 2 SECURE 2.0 cut the penalty for missing an RMD from 50% to 25%, and further to 10% if corrected within two years 2.
- 3 Roth 401(k) accounts are no longer subject to RMDs starting in 2024. Roth IRAs were already exempt. This is a major SECURE 2.0 win for tax-free retirement income 3.
- 4 Your first RMD deadline is April 1 of the year after you turn 73. But taking two RMDs in one year (the delayed first plus the regular second) can push you into a higher tax bracket.
- 5 The catch-up contribution limit for employees aged 60 to 63 increased to $11,250 in 2026 under SECURE 2.0, up from $8,000 for ages 50 to 59 2.
Why This Matters
- Missing an RMD triggers a 25% penalty on the amount you should have withdrawn. On a $500,000 IRA with a $20,000 RMD, that is a $5,000 penalty for a simple oversight 1.
- RMDs are taxed as ordinary income. Without planning, a large RMD can push you into a higher tax bracket, increase your Medicare IRMAA surcharge, and make more of your Social Security taxable.
- The SECURE 2.0 changes are the most significant RMD overhaul in decades. The Roth 401(k) RMD elimination alone could save some retirees tens of thousands in taxes over their lifetime 3.
- Tens of millions of Americans are affected by RMD rules. Many are unaware of the rule changes and risk penalties or tax surprises 2.
Key Facts
- RMD age in 2026: 73 (for those born 1951 to 1959). The age increases to 75 for those born in 1960 or later, effective in 2033.
- The missed RMD penalty is now 25% of the shortfall, reduced from the previous 50%. If corrected within the IRS correction window (typically 2 years), the penalty drops to 10% 2.
- Roth 401(k) accounts no longer require RMDs starting in 2024. Previously, Roth 401(k) holders had to take RMDs or roll to a Roth IRA. This change eliminates that workaround 3.
- The current IRS Uniform Lifetime Table (updated 2022) is used to calculate RMDs. For a 73-year-old, the distribution period is 26.5 years, meaning the RMD is about 3.77% of the account balance.
- If you have multiple traditional IRAs, you calculate the RMD for each separately but can take the total from any one or combination of IRAs. This does not apply to 401(k) plans, which must be withdrawn from each plan individually.
- Qualified Charitable Distributions (QCDs) of up to $111,000 in 2026 can satisfy your RMD without adding to your taxable income 1.
RMD Age Timeline Under SECURE 2.0
| Birth Year | RMD Starting Age | First RMD Year | Law That Applies |
|---|---|---|---|
| 1950 or earlier | 72 | 2022 or earlier | SECURE Act (2019) |
| 1951 | 73 | 2024 | SECURE 2.0 (2022) |
| 1952 | 73 | 2025 | SECURE 2.0 |
| 1953 | 73 | 2026 | SECURE 2.0 |
| 1954 | 73 | 2027 | SECURE 2.0 |
| 1955 to 1959 | 73 | 2028 to 2032 | SECURE 2.0 |
| 1960 or later | 75 | 2035 or later | SECURE 2.0 |
The RMD age increased from 70.5 to 72 under the original SECURE Act (2019), then to 73 under SECURE 2.0 (2022), with a further increase to 75 scheduled for 2033. Source: SECURE 2.0 Act of 2022, Section 107 [1][2].
RMD Calculation Example (2026)
| Account Balance (Dec 31, 2025) | Age in 2026 | IRS Distribution Period | Required Minimum Distribution |
|---|---|---|---|
| $250,000 | 73 | 26.5 | $9,434 |
| $500,000 | 73 | 26.5 | $18,868 |
| $750,000 | 75 | 24.6 | $30,488 |
| $1,000,000 | 78 | 22.0 | $45,455 |
| $1,000,000 | 80 | 20.2 | $49,505 |
| $1,000,000 | 85 | 16.0 | $62,500 |
RMD = Account Balance / Distribution Period. Distribution periods are from the IRS Uniform Lifetime Table (Publication 590-B). A surviving spouse who is the sole beneficiary and more than 10 years younger uses the Joint Life Table instead [1].
Key SECURE 2.0 RMD Changes at a Glance
| Change | Before SECURE 2.0 | After SECURE 2.0 (2026) | Impact |
|---|---|---|---|
| RMD Starting Age | 72 | 73 (75 starting 2033) | More years of tax-deferred growth |
| Missed RMD Penalty | 50% | 25% (10% if corrected) | Major reduction in penalty risk |
| Roth 401(k) RMDs | Required | Not required (since 2024) | Tax-free growth without forced withdrawals |
| Catch-up Contributions (60-63) | $7,500 | $11,250 (standard: $8,000) | Extra $3,250/year over standard catch-up |
| QCD Annual Limit | $100,000 | $111,000 (inflation-adjusted) | More room for tax-free charitable giving |
Step by Step: What to Do
Step 1: Determine Your RMD Starting Age
- If you were born between 1951 and 1959, your RMD age is 73.
- If you were born in 1960 or later, your RMD age is 75 (starting in 2033).
- If you are still working and do not own 5% or more of the company, you can delay 401(k) RMDs from your current employer plan until you actually retire. IRA RMDs are not affected by this exception.
Step 2: Calculate Your 2026 RMD Amount
- Find your total IRA and 401(k) balance as of December 31, 2025.
- Look up your age in the IRS Uniform Lifetime Table (Publication 590-B). For age 73, the distribution period is 26.5.
- Divide the balance by the distribution period. For a $500,000 IRA at age 73: $500,000 / 26.5 = $18,868.
- If you have multiple traditional IRAs, calculate each separately but you can take the combined total from any one IRA.
Step 3: Know Your Deadlines
- First-year RMD: April 1 of the year after you turn 73. If you turned 73 in 2025, your deadline is April 1, 2026.
- Every year after: December 31. Your 2026 RMD must be withdrawn by December 31, 2026.
- Warning: If you delay your first RMD to April 1, you will have two RMDs in the same tax year. This double distribution can push you into a higher bracket.
Step 4: Choose a Tax-Smart Withdrawal Strategy
- Consider spreading RMDs throughout the year with monthly or quarterly withdrawals instead of one lump sum in December.
- Use Qualified Charitable Distributions (QCDs) to send up to $111,000 directly from your IRA to charity. This satisfies the RMD without adding to taxable income.
- Coordinate RMDs with Roth conversions. In years where your income is lower, you might convert additional funds to Roth after taking the RMD.
- Track IRMAA thresholds. In 2026, single filers above $109,000 and joint filers above $218,000 in MAGI pay higher Medicare premiums 4.
Step 5: Set Up Automatic RMDs
- Most brokerages (Fidelity, Schwab, Vanguard) offer automatic RMD calculation and distribution. Set it up once and it withdraws the correct amount each year.
- Even with automatic distributions, review the calculation annually. Account balances change, and the distribution period changes with your age.
- Keep records of every distribution. The IRS does not track your RMDs for you. If audited, you need to prove you took the correct amount.
Real-World Example
Patricia, 73, has a $620,000 traditional IRA and a $180,000 Roth 401(k) from her former employer. Before SECURE 2.0, she would have needed to take RMDs from both accounts. Now, the Roth 401(k) is exempt, so her only RMD is from the traditional IRA: $620,000 / 26.5 = $23,396. She uses $15,000 as a Qualified Charitable Distribution to her church, reducing her taxable RMD to $8,396. Grace helped her set up automatic quarterly distributions and a reminder to review the calculation each January when the new balance is available.
From Grace
RMDs are not optional. But how you take them is entirely within your control.
- The biggest RMD mistake is not the penalty. It is the tax surprise. A $30,000 RMD added to Social Security and pension income can push you two tax brackets higher and trigger IRMAA surcharges on Medicare.
- If you are charitably inclined, the QCD is the single best tax move available to retirees. It satisfies your RMD, avoids income tax on the distribution, and supports causes you care about.
- Do not wait until December to take your RMD. If you forget or your brokerage makes an error, the penalty clock starts immediately on January 1.
Grace is an AI educational tool, not a licensed financial advisor. This content is for informational purposes only and does not constitute financial, tax, or legal advice. Always consult a qualified professional for decisions specific to your situation.
Frequently Asked Questions
What is the RMD age for 2026? +
The RMD age in 2026 is 73 for anyone born between 1951 and 1959. Under SECURE 2.0, the age will increase to 75 for those born in 1960 or later, effective in 2033. If you turned 73 in 2025, your first RMD deadline is April 1, 2026. If you turn 73 in 2026, your first RMD deadline is April 1, 2027.
What is the penalty for missing an RMD in 2026? +
The penalty for missing an RMD is 25% of the shortfall, reduced from the previous 50% under SECURE 2.0. If you correct the error within the IRS correction window (typically within two years), the penalty drops further to 10%. You correct it by withdrawing the missed amount and filing Form 5329 with your tax return.
Do I have to take RMDs from my Roth 401(k)? +
No. Starting in 2024, Roth 401(k) accounts are no longer subject to RMDs. This is a major change from SECURE 2.0. Previously, Roth 401(k) holders either had to take RMDs or roll the money into a Roth IRA to avoid them. Roth IRAs have never required RMDs during the owner's lifetime.
How do I calculate my RMD? +
Divide your account balance as of December 31 of the prior year by the IRS distribution period for your age. Use the Uniform Lifetime Table in IRS Publication 590-B. For example, at age 73 the distribution period is 26.5. If your balance was $500,000, your RMD is $500,000 / 26.5 = $18,868. If you have multiple IRAs, calculate each separately but you can take the combined total from any one or combination of IRAs.
Can I reduce my taxes on RMDs? +
Yes. The most effective strategies are: (1) Qualified Charitable Distributions, which send up to $111,000 directly from your IRA to charity, satisfying the RMD without adding to taxable income. (2) Roth conversions in lower-income years before RMDs begin, which reduce future RMD amounts. (3) Spreading distributions across the year to avoid lumpy income. (4) Coordinating with Social Security timing and other income to stay below IRMAA thresholds.
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Quick Topics
Sources
- [1] Schneider Downs, RMD Rules for 2026: Who Is Affected, Deadlines, Penalties, and Key Changes (accessed March 31, 2026)
- [2] Ameritas, SECURE Act 2.0: Roth & RMD Rules for 2026 (accessed March 31, 2026)
- [3] AARP, 9 Ways Your Retirement Planning Will Change in 2026 (accessed March 31, 2026)
- [4] Centers for Medicare and Medicaid Services, 2026 IRMAA Brackets (accessed March 31, 2026)
Educational content only. This is not financial, tax, or legal advice. Consult a qualified professional for guidance specific to your situation.