Does Schwab calculate my RMD automatically?

Yes. Schwab's RMD service calculates your annual required minimum distribution based on your prior year-end IRA balance and your age using the IRS Uniform Lifetime Table. You can set up automatic distributions — monthly, quarterly, or annually — so the correct amount is withdrawn and delivered without manual action each year.

Can I use Schwab Intelligent Income to manage my RMDs?

Yes. Schwab Intelligent Income is a feature of Schwab Intelligent Portfolios Premium that automates tax-efficient withdrawals from your accounts, including managing RMDs. It takes into account your RMD requirement when generating your monthly paycheck from your portfolio. Note that Intelligent Portfolios Premium has a $30/month subscription fee.

How do I make a QCD at Schwab?

To execute a Qualified Charitable Distribution at Schwab, call Schwab at 800-435-4000 or use the online platform to request a direct transfer from your IRA to a qualified charity. The check must be made payable to the charity, not to you. Schwab reports the full distribution on Form 1099-R; you report the QCD exclusion on your tax return.

What happens if I miss my Schwab RMD deadline?

Missing the December 31 deadline triggers a 25% excise tax on the amount not withdrawn. The penalty drops to 10% if you self-correct and file an amended return (IRS Form 5329) within two years. Schwab's automatic distribution service eliminates this risk by scheduling withdrawals in advance.

Can I aggregate RMDs across multiple Schwab IRA accounts?

Yes. If you have multiple traditional IRAs at Schwab (or at any institution), you calculate the RMD for each account separately but can withdraw the total combined amount from any one account. You cannot aggregate IRA RMDs with 401(k) RMDs.

Schwab RMD 2026 — How to Calculate, Schedule, and Automate Required Minimum Distributions

Your Schwab 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 about 3.77% of the prior year-end balance. Schwab offers an automatic RMD service and, for Intelligent Portfolios Premium subscribers, Schwab Intelligent Income — which automates tax-efficient withdrawals including RMD satisfaction from your entire portfolio.

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.

Schwab’s RMD Tools and Services

Schwab Automatic RMD Service

Schwab calculates and distributes your annual RMD automatically:

Setup: Log in to schwab.com, navigate to your IRA, and select “Set Up Automatic Withdrawals” — or call 800-435-4000
Calculation method: Schwab uses your prior December 31 balance and the IRS Uniform Lifetime Table
Schedule: Monthly, quarterly, or annual distributions
Delivery: Transfer to Schwab Bank account, external bank account, or check

Schwab Intelligent Income

For Schwab Intelligent Portfolios Premium subscribers, Schwab Intelligent Income provides automated, tax-smart withdrawals from your accounts. It:

Calculates the total income needed across your Schwab accounts
Factors in your RMD requirement so it is satisfied within the withdrawal plan
Draws from accounts in a tax-efficient sequence (taxable accounts first in many scenarios)
Generates a monthly “paycheck” deposited to your bank

This is Schwab’s most comprehensive RMD management tool for retirees who want a fully automated income plan. Intelligent Portfolios Premium costs $30/month after a one-time $300 planning fee.

Schwab RMD Calculator

Schwab’s online RMD calculator is available at schwab.com/rmd-calculator. Enter your account balance, date of birth, and beneficiary information to estimate your 2026 RMD and project future years.

Setting Up Your Schwab RMD

Online:

Log in to schwab.com and navigate to your traditional IRA
Select “Withdrawals” from the account menu
Choose “Required Minimum Distribution” as the withdrawal reason
Set up the schedule, amount method (calculated vs. fixed), and delivery destination
Confirm — Schwab automatically recalculates each January

By phone: Call 800-435-4000 and ask to set up an automatic RMD distribution.

QCDs at Schwab: Step-by-Step

Confirm you are 70½ or older
Call Schwab at 800-435-4000 to request a QCD check
Provide charity details — name, address, tax ID (EIN)
Schwab issues a check made payable directly to the charity
Deliver or mail the check — or Schwab can mail directly
Report on your return — Schwab’s 1099-R shows the full distribution; you enter the QCD exclusion on Form 1040, Line 4b

QCDs count toward your RMD, exclude the donated amount from your adjusted gross income, and do not require itemizing deductions.

Schwab RMD by Account Type

Account Type	RMD Required?	Notes
Schwab Traditional IRA	Yes	Aggregatable with other IRAs
Schwab SEP-IRA	Yes	Aggregatable with other IRAs
Schwab SIMPLE IRA	Yes	2-year rule applies
Schwab Roth IRA	No	No RMD during owner’s lifetime
Schwab Roth 401(k)	No	Exempt from RMDs since 2024 (SECURE 2.0)
Schwab Individual 401(k)	Yes	Must take from the specific plan

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy