What Are RMDs and How Do You Take Them? 2026 Rules, Deadlines and Tax Planning Tips

Born between the years of 1946 and 1964, the Baby Boomer generation has lived through significant societal milestones — from the counterculture of the 60s and the Vietnam War, through the moon landing, the Cold War, the invention of the internet, 9/11, the Great Recession, and beyond.

Now, more and more Baby Boomers are experiencing a new milestone: They’re turning 73.

Compared to the rest of the list, “milestone” might seem like a bit of an overstatement, but it’s an important age in the realm of retirement planning. This is the age when you’re mandated to begin taking required minimum distributions (RMDs) from most retirement accounts.

What are Required Minimum Distributions (RMDs)?

Required Minimum Distributions are the minimum amount that retirees generally must withdraw each year from certain types of retirement accounts, starting at the applicable RMD age. For many current retirees, that age is 73, while those born in 1960 or later are generally scheduled to begin at age 75 under SECURE 2.0.

The idea behind RMDs is that the government has given you the opportunity to enjoy decades of tax-deferred growth on your investments in your IRA, 401(k), and other qualified retirement accounts. Once you reach age 73, Uncle Sam is ready to begin cashing in on those deferred taxes by forcing you to start taking distributions.

RMD Age by Birth Year

If you delay your first RMD until April 1 of the following year, you may need to take two RMDs in that same calendar year: the delayed first RMD and the current year’s RMD by December 31.

What are the rules of RMDs?

The rules surrounding RMDs can seem arcane, especially if you’ve never taken one before. Keep in mind that there are plenty of caveats and exceptions to the “rules” we’re outlining here.

If you need help figuring out the specifics of RMDs, we recommend working with a qualified financial advisor.

2026 RMD Rules at a Glance

These rules are general and may vary based on your plan, employment status, beneficiary situation and account type. Review your situation with a tax or financial professional before taking action.

How are RMDs calculated?

The amount you must withdraw varies from year to year and is based on a percentage of the total assets you hold that are subject to RMD rules. In general, you determine this percentage using your life expectancy, and the IRS’s “Uniform Lifetime Table”.

Note that you calculate the total RMD across all of your eligible accounts and can withdraw from any combination of them, except where certain plan rules require otherwise.

So, for example, let’s say you recently turned 73, which means it’s currently the first year you must take RMDs. By using the IRS’s Uniform Life Table, you can calculate that you’ll have to withdraw about 3.77% of your eligible assets for your first RMD. Someone who’s 75 this year will have to withdraw about 4.07% of their assets.

Simple RMD calculation example

The IRS Uniform Lifetime Table lists the age 73 factor as 26.5 and the age 75 factor as 24.6, which is why the required withdrawal percentage generally rises as you age. 

Importantly, you do not simply calculate one total RMD across all eligible accounts and withdraw it from any account you choose. Aggregation rules depend on account type.

Which Retirement Accounts Have RMDs?

Generally, RMD rules apply to all employer-sponsored retirement plans, including traditional 401(k)s, 403(b)s, and 457(b)s, as well as traditional IRAs. Additionally, SEP and SIMPLE IRAs, which are often used by small business owners and self-employed individuals, are also subject to RMDs.

Notably, Roth IRAs are an exception: They do not require RMDs during the original account owner’s lifetime, because they are funded with after-tax dollars. Designated Roth accounts in 401(k) and 403(b) plans also do not require lifetime RMDs for the original account owner under current IRS guidance. However, beneficiaries of Roth IRAs and designated Roth accounts may still be subject to RMD rules.

Which Accounts Have RMDs?

How to take your first RMD: A Timeline

To help illustrate the process of taking your first RMD, let’s pretend you turned 73 this March and are required to take your first RMD for 2026. You generally have until April 1, 2027, to actually make that first distribution. After your first RMD, all subsequent RMDs must generally be made by December 31 each year..

Keep in mind that if you do wait until the last minute to take your first RMD by April 1 of the following year, you’ll have to take two RMDs during that calendar year the delayed first RMD and your second RMD by December 31. After that, though, you’d just be required to take one per calendar year.

If you are still working past your RMD age, your current employer’s plan may allow you to delay RMDs from that plan until the year you retire, unless you own 5% or more of the business sponsoring the plan. This still-working exception generally does not apply to traditional IRAs, SEP IRAs or SIMPLE IRAs.

RMDs and Prior Distributions

Another common point of confusion around RMDs is if any distributions made prior to turning 73 count towards RMD for that year. In other words, if you turn 73 in March 2026, and you made a distribution in February 2026, would that count towards your 2026 RMD?

The answer is yes — any distributions made during the year you turn 73 counts towards your retirement, whether they occur before you reach age 73 or afterwards.

RMD Deadlines and Penalties

Missing an RMD deadline can be costly. If you don’t take your RMD by the required deadline, the IRS imposes a steep penalty. Historically, this penalty was 50% of the amount you were supposed to withdraw but didn’t. However, as of the passage of the SECURE Act 2.0, this penalty has been reduced to 25%, and if you take corrective action within a specified “correction period”, the penalty is further reduced to 10%. Regardless, it’s important to plan ahead and ensure you meet the deadlines to avoid these unnecessary costs.

If you have questions about how to integrate RMDs as a part of your tax-smart retirement portfolio, ask your financial advisor to help you navigate. They have the tools necessary to make sure you’re taking your RMD in the most efficient manner possible, and to help ensure you’re prepared to make RMDs for many years to come.

Frequently Asked Questions About RMDs

1. When do RMDs start?

RMDs generally begin at age 73 for many current retirees. Under SECURE 2.0, the applicable age is either 73 or 75 depending on date of birth, with those born in 1960 or later generally starting at age 75.

2. How are RMDs calculated?

RMDs are generally calculated by dividing the account balance as of December 31 of the prior year by the applicable IRS life expectancy factor. Most account owners use the Uniform Lifetime Table unless a special rule applies.

3. What is the RMD deadline?

Your first RMD is generally due by April 1 of the year after the year you reach your RMD starting age. After that, RMDs are generally due by December 31 each year.

4. Which accounts have RMDs?

RMDs generally apply to traditional IRAs, SEP IRAs, SIMPLE IRAs, traditional 401(k)s, 403(b)s, 457(b)s and other defined contribution plans. Roth IRAs and designated Roth 401(k) or 403(b) accounts do not require lifetime RMDs for the original owner, but beneficiaries may be subject to RMD rules.

5. Can I satisfy my 401(k) RMD from an IRA?

Generally, no. IRA RMDs can generally be aggregated with other IRA RMDs, but most 401(k), profit-sharing, 457(b) and other defined contribution plan RMDs must be calculated and satisfied separately from each plan.

6. Can a QCD satisfy an RMD?

Yes, a qualified charitable distribution can count toward an RMD if it is made correctly from an eligible IRA directly to a qualified charity. QCDs may be excluded from taxable income, subject to IRS rules and annual limits.

7. What happens if I miss an RMD?

If you do not take enough of your RMD by the required deadline, the IRS may impose a 25% excise tax on the amount not distributed as required. The tax may be reduced to 10% if corrected within two years.

8. Are RMDs taxable?

RMDs are generally included in taxable income, except for any portion that was already taxed or can be received tax-free. RMDs may also affect Social Security taxation and Medicare IRMAA, so withholding and tax planning are important.

9. Should I do a Roth conversion before RMDs begin?

A Roth conversion before RMD age may help reduce future RMDs and create tax diversification, but it can also increase taxable income in the year of conversion. Consider tax brackets, Social Security timing, Medicare premiums, estate planning and available cash to pay the tax before converting.

10. Can I take more than my RMD?

Yes, you can withdraw more than the minimum required amount. However, excess withdrawals generally do not count toward future-year RMDs, and additional taxable withdrawals may affect your broader tax plan.

If you have questions about how RMDs fit into your retirement income, tax and estate plan, consider working with a Wealth Enhancement advisor to evaluate your options before the deadline.

Traditional IRA account owners have considerations to make before performing a Roth IRA conversion. These primarily include income tax consequences on the converted amount in the year of conversion, withdrawal limitations from a Roth IRA, and income limitations for future contributions to a Roth IRA. In addition, if you are required to take a required minimum distribution (RMD) in the year you convert, you must do so before converting to a Roth IRA. 

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.

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