At what age do RMDs start?

RMDs begin at age 73 for people born between 1951-1959 and at age 75 for people born in 1960 or later (under the SECURE 2.0 Act). You must take your first RMD by April 1 of the year after you turn the applicable age.

What is the penalty for not taking an RMD?

The penalty for failing to take a required minimum distribution is 25% of the amount that should have been withdrawn. This is reduced to 10% if you correct the error within two years.

Required Minimum Distributions (RMDs): Rules, Age & Calculation (2026)

Required Minimum Distributions (RMDs) force you to withdraw — and pay taxes on — money from tax-deferred retirement accounts starting at a certain age. Understanding the rules helps you plan distributions strategically and avoid expensive penalties.

RMD Age Requirements

Birth Year	RMD Starting Age	First RMD Due By
1950 or earlier	72	Already required
1951-1959	73	April 1 after turning 73
1960 or later	75	April 1 after turning 75

SECURE 2.0 Act (2022) pushed the RMD age from 72 to 73, and will increase it to 75 starting in 2033.

Which Accounts Require RMDs?

Account Type	RMDs Required?	Starting Age
Traditional IRA	Yes	73/75
Traditional 401(k)	Yes	73/75 (or retirement if later)
403(b)	Yes	73/75 (or retirement if later)
SEP IRA	Yes	73/75
SIMPLE IRA	Yes	73/75
Inherited IRA (non-spouse)	Yes	Years 1-10 (10-year rule)
Inherited IRA (spouse)	Yes	Can delay to deceased’s RMD age
Roth IRA (original owner)	No	Not required during lifetime
Roth 401(k)	No (starting 2024)	Eliminated by SECURE 2.0
Roth IRA (inherited)	Yes	10-year rule
HSA	No	Not required

Key insight: Roth IRAs have no RMDs during the owner’s lifetime — one of their biggest advantages.

RMD Calculation Tables (Uniform Lifetime Table)

To calculate your RMD: Account balance (Dec. 31 of prior year) ÷ Life expectancy factor

Age	Life Expectancy Factor	RMD as % 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%
78	22.0	4.55%
79	21.1	4.74%
80	20.2	4.95%
81	19.4	5.15%
82	18.5	5.41%
83	17.7	5.65%
84	16.8	5.95%
85	16.0	6.25%
86	15.2	6.58%
87	14.4	6.94%
88	13.7	7.30%
89	12.9	7.75%
90	12.2	8.20%
91	11.5	8.70%
92	10.8	9.26%
93	10.1	9.90%
94	9.5	10.53%
95	8.9	11.24%

RMD Calculation Examples

Account Balance (Dec. 31)	Age	Factor	RMD Amount	Tax at 22% Bracket
$500,000	73	26.5	$18,868	$4,151
$500,000	78	22.0	$22,727	$5,000
$500,000	83	17.7	$28,249	$6,215
$750,000	73	26.5	$28,302	$6,226
$1,000,000	73	26.5	$37,736	$8,302
$1,000,000	80	20.2	$49,505	$10,891
$2,000,000	73	26.5	$75,472	$16,604

RMD Strategies to Minimize Taxes

1. Roth Conversions Before Age 73

Converting traditional IRA/401(k) money to a Roth IRA before RMDs start reduces future RMDs:

Strategy	Example
Convert in low-income years (early retirement)	$50K/year conversions at 12-22% brackets
Convert up to the top of your current tax bracket	Fill the 22% or 24% bracket
Multi-year conversion strategy	Spread over 5-10 years before age 73

2. Qualified Charitable Distributions (QCDs)

QCD Rule	Detail
Age requirement	70½ or older
Annual limit	$105,000 per person (2024, indexed)
Satisfies RMD?	Yes
Taxable income?	No (excluded from income)
Must go directly to charity	Yes, from IRA custodian to charity

QCDs are the most tax-efficient way for charitably-inclined retirees to satisfy RMDs.

3. Still-Working Exception (401(k) Only)

If you’re still working at 73+, you can delay RMDs from your current employer’s 401(k) (not IRAs) until you actually retire. This doesn’t apply to:

IRAs (always start at 73/75)
Former employer 401(k)s
You must not own 5%+ of the company

4. Aggregate IRA RMDs

If you have multiple IRAs, you can:

Calculate each IRA’s RMD separately
Withdraw the total from any one IRA (or combination)
Strategically withdraw from the least-performing account

This does NOT apply to 401(k)s — each 401(k) RMD must come from that specific plan.

RMD Penalties

Situation	Penalty
Failure to take full RMD	25% of the shortfall
Corrected within 2 years	Reduced to 10%
Reasonable cause (file Form 5329)	Possible waiver

Example Penalty

If your RMD is $30,000 and you withdraw only $10,000:

Shortfall: $20,000
Penalty: $5,000 (25%) or $2,000 (10% if corrected promptly)
Plus you still must withdraw the remaining $20,000 and pay income tax on it

Inherited IRA RMD Rules (SECURE Act)

Beneficiary Type	RMD Rule
Surviving spouse	Can treat as own, delay to deceased’s RMD age, or 10-year rule
Minor child	Annual RMDs until age 21, then 10-year rule
Disabled/chronically ill	Stretch over life expectancy
Person ≤10 years younger than deceased	Stretch over life expectancy
All other individuals	Must empty account within 10 years
Non-designated (estate, charity)	5-year rule or continued deceased’s schedule

The SECURE Act (2019) eliminated the lifetime stretch IRA for most non-spouse beneficiaries.