Your Vanguard 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, making the RMD about 3.77% of the prior year-end balance. Vanguard’s automatic distribution service handles the annual calculation and delivery, ensuring you satisfy the December 31 deadline without manually calculating each year. For charitably inclined retirees, Vanguard also supports Qualified Charitable Distributions (QCDs) by phone.
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.
Vanguard’s RMD Tools and Services
Vanguard Automatic Distribution Service
Vanguard calculates your RMD and distributes it on your schedule:
- Setup: Log in to vanguard.com and access the withdrawal/distribution section of your IRA, or call 800-662-7447
- Calculation: Vanguard applies the IRS Uniform Lifetime Table to your prior December 31 balance
- Schedule options: Monthly, quarterly, or annual distributions
- Delivery: Transfer to an external bank account, transfer to a Vanguard brokerage account, or mailed check
- Annual update: Vanguard recalculates each January automatically
Vanguard RMD Calculator
Vanguard’s RMD estimator at vanguard.com lets you project your 2026 RMD and future years based on your account balance and birth date.
In-Kind RMD Distributions
Vanguard allows in-kind RMDs: fund shares move from your traditional IRA to a Vanguard brokerage account, satisfying the RMD with the fair market value of transferred shares rather than cash. This is particularly useful for Vanguard’s index fund investors who want to maintain market exposure.
Setting Up Your Vanguard RMD
Online:
- Log in to vanguard.com and go to your traditional IRA
- Select “Withdrawal” from the account navigation
- Choose “Required Minimum Distribution” as the reason
- Set your schedule (annual is simplest; monthly spreads income through the year)
- Choose delivery: external bank transfer or check
- Confirm — Vanguard recalculates the amount each January
By phone: Call Vanguard at 800-662-7447; a representative can set up and confirm your automatic distribution.
QCDs at Vanguard: Step-by-Step
Unlike Fidelity and Schwab, Vanguard requires phone contact to initiate QCDs — they cannot be set up entirely online as of 2026.
- Confirm age 70½ or older
- Call Vanguard at 800-662-7447
- Provide charity information — legal name, mailing address, EIN
- Vanguard issues a check payable directly to the charity
- Send or deliver the check — Vanguard can mail directly upon request
- Tax reporting: Your 1099-R shows the full distribution; enter the QCD exclusion on Form 1040, Line 4b
QCDs count toward your RMD, are excluded from your adjusted gross income, and are beneficial even if you don’t itemize deductions.
Vanguard RMD by Account Type
| Account Type | RMD Required? | Notes |
|---|---|---|
| Vanguard Traditional IRA | Yes | Aggregatable with other IRAs |
| Vanguard SEP-IRA | Yes | Aggregatable with other IRAs |
| Vanguard SIMPLE IRA | Yes | 2-year holding rule applies |
| Vanguard Roth IRA | No | No RMD during owner’s lifetime |
| Vanguard 403(b) (via employer) | Yes | Per-plan, cannot aggregate with IRA |
Consolidation Advantage: Simplifying RMDs at Vanguard
One of the most practical ways to simplify RMD management is to consolidate old 401(k) accounts into a single Vanguard traditional IRA via rollover. With all assets in one IRA:
- One calculation instead of multiple per-plan calculations
- One distribution satisfies the entire RMD obligation
- Vanguard’s automatic service manages the single account seamlessly
See Vanguard 401(k) Rollover to IRA 2026 for the rollover process.
Related Vanguard Guides
- Vanguard Roth Conversion 2026 — Strategy Guide & Step-by-Step
- Vanguard Inherited IRA 2026 — 10-Year Rule, RMDs & What to Know
- Vanguard Traditional IRA 2026 — Deduction Rules & Limits
- Vanguard SEP-IRA 2026 — Contribution Limits & Rules
- Vanguard — Complete Investor Guide 2026
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