Your Merrill Edge required minimum distribution (RMD) for 2026 equals your December 31, 2025 IRA balance divided by your IRS life expectancy factor — 26.5 at age 73, producing an RMD of roughly 3.77% of your prior year-end balance. Merrill Edge offers automatic RMD calculation and distribution, so you never miss the December 31 deadline. One important nuance for Bank of America customers: RMD withdrawals reduce your Merrill IRA balance, which affects your Preferred Rewards combined balance — but reinvesting into a Merrill taxable brokerage account preserves that balance for tier qualification.
What Are RMDs?
Required minimum distributions (RMDs) are the minimum amounts the IRS requires you to withdraw from pre-tax retirement accounts each year once you reach the applicable starting age. The IRS uses RMDs to ensure that tax-deferred money eventually gets taxed — you cannot leave pre-tax funds in an IRA or 401(k) indefinitely.
Accounts subject to RMDs:
- Traditional IRAs
- SEP-IRAs
- SIMPLE IRAs
- 401(k), 403(b), and 457(b) plans (employer accounts)
Accounts NOT subject to RMDs (during the owner’s lifetime):
- Roth IRAs
- Roth 401(k) accounts (Roth 401(k) RMD exemption effective 2024 under SECURE 2.0)
2026 RMD Starting Age Rules
Under SECURE 2.0, the RMD starting age depends on your birth year:
| Birth Year | RMD Starting Age |
|---|---|
| Before 1951 | Already in RMD years |
| 1951–1959 | Age 73 |
| 1960 or later | Age 75 |
Your first RMD can be delayed to April 1 of the year following the year you reach your starting age. All subsequent RMDs must be taken by December 31 of each year. If you delay your first RMD, you will take two RMDs in one calendar year — which can push you into a higher tax bracket. In most cases, it makes more sense to take your first RMD by December 31 of the year you turn 73 (or 75).
How to Calculate Your RMD
The IRS uses the Uniform Lifetime Table (IRS Publication 590-B, Table III) for most IRA owners. The formula is:
$$ ext{RMD} = rac{ ext{Prior Year-End Account Balance}}{ ext{IRS Life Expectancy Factor}}$$
Selected factors from the 2026 IRS Uniform Lifetime Table:
| Your Age | Life Expectancy Factor | RMD % of Balance |
|---|---|---|
| 73 | 26.5 | 3.77% |
| 74 | 25.5 | 3.92% |
| 75 | 24.6 | 4.07% |
| 76 | 23.7 | 4.22% |
| 77 | 22.9 | 4.37% |
| 80 | 20.2 | 4.95% |
| 85 | 16.0 | 6.25% |
| 90 | 12.2 | 8.20% |
| 95 | 8.9 | 11.24% |
Exception: If your sole beneficiary is a spouse who is more than 10 years younger, you use the Joint Life and Last Survivor Table (IRS Table II) — which produces lower RMDs.
Worked Example: Age-73 RMD
You turn 73 in 2026. Your traditional IRA balance on December 31, 2025 was $750,000. Your spouse is within 10 years of your age, so you use the Uniform Lifetime Table.
- Life expectancy factor at age 73: 26.5
- RMD = $750,000 ÷ 26.5 = $28,302
You must withdraw at least $28,302 from your traditional IRA by December 31, 2026. You can withdraw more, but you cannot carry unused RMD amounts to a future year.
Worked Example: Multiple IRAs
If you have three traditional IRAs, you calculate a separate RMD for each account — but you can take the total combined RMD from any one or combination of those accounts. The IRS requires you calculate per-account but allows flexible withdrawal across accounts.
- IRA #1: $400,000 ÷ 26.5 = $15,094
- IRA #2: $250,000 ÷ 26.5 = $9,434
- IRA #3: $100,000 ÷ 26.5 = $3,774
- Total combined RMD: $28,302
You can withdraw the full $28,302 from IRA #1 alone — you do not need to pull from each account separately.
The RMD Penalty
Missing an RMD — or taking less than the required amount — triggers a 25% excise tax on the shortfall. SECURE 2.0 reduced this from the prior 50% penalty. The penalty drops to 10% if you correct the missed RMD and file an amended return within two years.
Qualified Charitable Distributions (QCDs): The Best RMD Strategy
If you are age 70½ or older, you can make a Qualified Charitable Distribution (QCD) — a direct transfer from your IRA to a qualified charity. The QCD:
- Counts toward your annual RMD
- Is excluded from your taxable income (unlike a regular withdrawal)
- Has a 2026 annual limit of $108,000 per person ($216,000 for married couples each using their own IRA)
Tax impact of QCD vs regular RMD withdrawal:
| Method | RMD Amount | Taxable Income Increase | Federal Tax (22% bracket) |
|---|---|---|---|
| Regular withdrawal | $28,302 | +$28,302 | +$6,226 |
| QCD to charity | $28,302 | $0 | $0 |
A QCD satisfies your RMD obligation while generating zero taxable income — making it the most tax-efficient strategy for charitably inclined retirees.
RMD Aggregation Rules
IRAs: You can aggregate RMDs across all traditional IRAs and withdraw the total from any one account.
401(k)s: You cannot aggregate 401(k) RMDs with IRA RMDs. Each 401(k) RMD must be taken from that specific account. However, if you have multiple 401(k)s at a former employer, you can aggregate those.
Practical tip: Many retirees roll old 401(k)s into a single traditional IRA to simplify RMD management to one account.
RMDs and Taxes
RMD withdrawals are treated as ordinary income. Large RMDs can:
- Push you into a higher federal tax bracket
- Trigger IRMAA surcharges on Medicare Part B and D premiums (income-tested)
- Cause up to 85% of Social Security benefits to become taxable
- Affect eligibility for income-based programs
This is why Roth conversions before RMDs begin are one of the most powerful retirement tax strategies — reducing the pre-tax balance reduces future RMD amounts.
Merrill Edge’s RMD Tools and Services
Merrill Edge Automatic RMD Service
Merrill Edge calculates and distributes your annual RMD automatically:
- Setup: Log in to merrilledge.com and access your IRA distribution settings, or call Merrill at 888-637-3343
- Calculation: Merrill applies the IRS Uniform Lifetime Table to your prior December 31 balance
- Schedule: Monthly, quarterly, or annual distributions
- Delivery: Transfer to a Bank of America checking/savings account, Merrill taxable brokerage account, or check
Merrill Retirement Assessment
Merrill Edge offers access to a Merrill Financial Advisor for retirement planning conversations, including RMD strategy. Platinum Honors Preferred Rewards members ($100,000+ combined balance) receive more comprehensive access. These advisors can help develop a multi-year strategy for RMDs — including Roth conversion timing, QCD plans, and sequencing withdrawals from taxable and tax-deferred accounts.
BofA Integration: Easiest RMD Delivery
Because Merrill Edge and Bank of America share infrastructure, RMD distributions can be deposited directly into your Bank of America checking account — often within the same business day. This is the most seamless cash delivery option for retirees who bank with BofA.
Setting Up Your Merrill Edge RMD
Online:
- Log in to merrilledge.com and navigate to your traditional IRA
- Select “Withdraw” or “Distributions” from the account menu
- Choose “Required Minimum Distribution” as the reason
- Set the schedule and delivery account
- Confirm — Merrill recalculates each January
By phone: Call Merrill Edge at 888-637-3343 for help setting up automatic RMD distributions.
QCDs at Merrill Edge: Step-by-Step
- Confirm age 70½ or older
- Call Merrill Edge at 888-637-3343 to request a QCD
- Provide charity details — legal name, address, EIN
- Merrill issues a check made payable directly to the charity
- Mail or deliver the check — Merrill can send directly to the charity on request
- Tax reporting: Merrill’s 1099-R shows the full distribution; you report the QCD exclusion on Form 1040, Line 4b
Preferred Rewards and RMDs: What to Know
| Scenario | Effect on Preferred Rewards Balance |
|---|---|
| RMD withdrawn, deposited to BofA checking | Reduces Merrill IRA balance; does not count in BofA checking |
| RMD reinvested in Merrill taxable account | No net change — balance stays in Merrill ecosystem |
| RMD donated as QCD to charity | Reduces IRA balance; no offsetting account |
| Roth conversion before RMD years | Reduces future RMD amounts; Roth IRA balance still counts |
Key insight: To protect your Preferred Rewards tier while taking RMDs, consider reinvesting RMD distributions into a Merrill taxable brokerage account rather than spending or moving to an external bank.
Merrill Edge RMD by Account Type
| Account Type | RMD Required? | Notes |
|---|---|---|
| Merrill Edge Traditional IRA | Yes | Aggregatable with other IRAs |
| Merrill Edge SEP-IRA | Yes | Aggregatable with other IRAs |
| Merrill Edge Roth IRA | No | No RMD during owner’s lifetime |
| Merrill Edge Rollover IRA | Yes | Treated as traditional IRA |
Related Merrill Edge Guides
- Merrill Edge Roth Conversion 2026 — Strategy Guide & Step-by-Step
- Merrill Edge Inherited IRA 2026 — 10-Year Rule, RMDs & How to Open
- Merrill Edge Traditional IRA 2026 — Deduction Rules & Limits
- Merrill Edge SEP-IRA 2026 — Contribution Limits & Rules
- Merrill Edge — Complete Investor Guide 2026
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