Required Minimum Distributions 2026: RMD Rules, Tables & Strategies to Reduce Them

If you have money in a traditional IRA, 401(k), 403(b), or most other tax-deferred retirement accounts, the IRS will eventually require you to start taking withdrawals — whether you need the money or not. These Required Minimum Distributions (RMDs) are taxable income, and failing to take them triggers one of the harshest penalties in the tax code.

The rules changed significantly under the SECURE Act 2.0, and the 2026 tax year brings important updates. This guide covers everything you need to know: when RMDs start, how to calculate them, the updated life expectancy tables, and strategies to minimize the tax impact.

SECURE Act 2.0 Changes: When Do RMDs Start?

The age at which RMDs begin has changed multiple times in recent years. Here is the current schedule:

For 2026, individuals born in 1953 will turn 73 and must begin RMDs by April 1, 2027 (the deadline for your first RMD is April 1 of the year after you turn 73). However, delaying your first RMD to April means you may take two RMDs in 2027 — your 2026 RMD and your 2027 RMD — which can push you into a higher tax bracket.

Important:If you are still working and participating in your current employer's 401(k), you can delay RMDs from that specific plan until you retire (the "still working" exception). This does not apply to IRAs or 401(k)s from former employers.

How to Calculate Your RMD

The calculation itself is simple:

RMD = Account Balance (Dec. 31 of prior year) / Life Expectancy Factor

You use the IRS Uniform Lifetime Table (Table III) to find your life expectancy factor based on your age. If your spouse is more than 10 years younger than you and is the sole beneficiary, you use the Joint Life and Last Survivor Expectancy Table instead, which produces a smaller RMD.

Worked Example

Robert is 75 years old. His traditional IRA balance on December 31, 2025 was $850,000.

From the Uniform Lifetime Table, the factor for age 75 is 24.6.

RMD = $850,000 / 24.6 = $34,553

Robert must withdraw at least $34,553 from his IRA in 2026. This amount is added to his taxable income for the year.

Calculate your exact RMD with our RMD Calculator.

2026 RMD Life Expectancy Table (Uniform Lifetime Table III)

This is the table most people use. It assumes a beneficiary exactly 10 years younger (even if that is not the case). The IRS updated these factors in 2022 to reflect longer life expectancies, resulting in slightly lower RMDs.

Notice how the percentage increases each year. At 73, you withdraw about 3.77% of your balance. By 85, it is 6.25%. By 90, it is 8.20%. This accelerating withdrawal rate is designed to deplete the account over your remaining life expectancy — though in practice, if your investments earn more than the withdrawal rate, your balance can still grow.

Penalty for Missing an RMD

The SECURE Act 2.0 reduced the penalty, but it is still significant:

• Current penalty: 25% of the amount consider have withdrawn but did not
• Reduced to 10% if you correct the error within 2 years (file a corrective distribution and amended return)
• Previous penalty: 50% (before SECURE Act 2.0)

Using Robert's example: if he fails to withdraw his $34,553 RMD, the penalty is $34,553 x 25% = $8,638. If he corrects it within 2 years, the penalty drops to $3,455.

This makes RMD compliance non-negotiable. Set calendar reminders, automate distributions, or work with a financial advisor to ensure you never miss one.

Which Accounts Require RMDs — and Which Do Not

Accounts Subject to RMDs

• Traditional IRAs
• SEP-IRAs
• SIMPLE IRAs
• 401(k) plans (including solo 401(k)s)
• 403(b) plans
• 457(b) governmental plans
• Traditional profit-sharing plans

Accounts NOT Subject to RMDs

• Roth IRAs — No RMDs during the owner's lifetime. This is the single biggest advantage of Roth accounts and a major reason Roth conversions are popular.
• Roth 401(k)s — Starting in 2024 (under SECURE Act 2.0), Roth 401(k) accounts are no longer subject to RMDs. Previously, they were.
• Health Savings Accounts (HSAs) — No RMDs at any age.

Key note:Inherited Roth IRAs do have distribution requirements under the 10-year rule (see below), even though the original owner's Roth IRA did not.

Strategies to Reduce Your RMDs

Since RMDs are taxable income, reducing them can save significant money over decades of retirement. Here are the most effective strategies:

1. Roth Conversions Before RMDs Begin

The single most powerful RMD reduction strategy. Between retirement and age 73, you may be in a lower tax bracket — this is the ideal window for Roth conversions.

How it works: Convert traditional IRA money to a Roth IRA. You pay income tax on the converted amount now, but the money grows tax-free in the Roth and is never subject to RMDs.

Example: Linda retires at 62 with $1,200,000 in a traditional IRA. Her taxable income in retirement (before RMDs) is only $30,000 from Social Security and a small pension. She has 11 years before RMDs begin at 73.

She converts $50,000 per year, staying within the 22% tax bracket. Over 11 years, she converts $550,000, paying approximately $121,000 in taxes. But that $550,000 — plus all future growth — is now Roth money. Tax-free forever. No RMDs ever.

Without conversions, her $1,200,000 growing at 6% becomes $2,275,000 by age 73. Her first RMD would be $85,849 — pushing her into a higher bracket. With conversions, her traditional IRA balance is smaller and her RMDs are correspondingly lower.

Model your own Roth conversion strategy with the Roth IRA Calculator.

2. Qualified Charitable Distributions (QCDs)

If you are 70 1/2 or older and make charitable donations, QCDs are one of the most tax-efficient strategies available.

How it works: Donate up to $111,000 per year (2026 limit, indexed for inflation under SECURE 2.0) directly from your IRA to a qualified charity. The QCD satisfies your RMD but is excluded from your taxable income. A one-time QCD to a split-interest entity (e.g., charitable gift annuity or charitable remainder trust) is capped at $55,000 for 2026.

Example: Robert's $34,553 RMD would normally be taxed at his 22% marginal rate, costing $7,602 in federal tax. If he donates $15,000 of that via QCD, only $19,553 is taxable income. Tax savings: $3,300.

QCDs are better than taking the RMD and then donating cash because: (1) the QCD reduces AGI, which affects Medicare premium surcharges (IRMAA), Social Security taxation, and other income-sensitive calculations; (2) you get the tax benefit even if you take the standard deduction.

3. Delay Your First RMD Strategically

You can delay your first RMD to April 1 of the following year. But use this only if taking two RMDs in the next year will not push you into a significantly higher bracket.

Two RMDs in one year can trigger: higher marginal tax rates, Medicare IRMAA surcharges ($170+ per month for higher earners), increased Social Security taxation, and reduced eligibility for certain tax credits.

4. Use the "Still Working" Exception for 401(k)s

If you are still employed at age 73 and still contributing to your current employer's 401(k), you can delay RMDs from that plan until you retire. This does not apply to IRAs or 401(k)s from former employers.

Strategy: If you plan to work past 73, consider rolling old 401(k)s and traditional IRAs into your current employer's plan (if it allows incoming rollovers) to consolidate and delay all RMDs.

5. Consider Qualified Longevity Annuity Contracts (QLACs)

You can use up to $200,000 from your retirement accounts to purchase a QLAC — a deferred annuity that begins payments at a later age (up to 85). The amount used for the QLAC is excluded from your RMD calculation until payments begin, effectively reducing your RMDs in the interim years.

Inherited IRA RMD Rules: The 10-Year Rule

The SECURE Act fundamentally changed inherited IRA rules. If you inherited an IRA from someone who died after December 31, 2019, different rules apply based on your beneficiary category:

Eligible Designated Beneficiaries (Can Use Life Expectancy Method)

• Surviving spouse
• Minor children (until age 21, then the 10-year rule kicks in)
• Disabled or chronically ill individuals
• Beneficiaries not more than 10 years younger than the deceased

All Other Designated Beneficiaries (10-Year Rule)

Must withdraw the entire inherited IRA balance by December 31 of the 10th year after the owner's death. If the original owner had already started RMDs, the beneficiary must also take annual RMDs during the 10-year period (based on their own life expectancy), with the remaining balance withdrawn by year 10.

This is a significant change from the old "stretch IRA" rules that allowed beneficiaries to take distributions over their entire lifetime.

Plan inherited IRA distributions with our Inherited IRA Calculator.

RMDs and Tax Bracket Management

The key to minimizing lifetime taxes on RMDs is bracket management — ensuring your RMD income does not push you into a higher marginal bracket unnecessarily.

2026 federal tax brackets for single filers:

If your Social Security and pension income puts you at $40,000 taxable income, and your RMD adds $35,000, your total is $75,000 — well within the 22% bracket. But if your RMD pushes you above $105,700, that incremental income is taxed at 24%. Strategic Roth conversions in earlier years could have prevented this.

Calculate Your 2026 RMD

Do not guess at your required minimum distribution. Our RMD Calculator uses the current Uniform Lifetime Table to calculate your exact RMD based on your age and account balance. You can also use the Required Minimum Distribution Calculator to model multiple accounts and see your total RMD across all retirement accounts.

If you are considering Roth conversions to reduce future RMDs, the Roth IRA Calculator will help you model the tax trade-offs. And if you have inherited an IRA, the Inherited IRA Calculator can help you plan your distribution strategy under the 10-year rule.