Required Minimum Distributions (RMDs) are mandatory annual withdrawals from tax-deferred retirement accounts once you reach a certain age. Missing an RMD triggers significant penalties — up to 25% of the amount you should have withdrawn — so knowing your exact amount each year is critical. Whether you hold a Traditional IRA, a 401(k), or a SEP IRA, RMDs affect your tax bracket, your Social Security taxes, and your Medicare premiums. Use the reference tables below to estimate your distribution, then read on for strategies to reduce the tax hit.
RMD Quick Reference Table
The IRS Uniform Lifetime Table determines how much you must withdraw based on your age. Here’s how much you must withdraw at each age, per $100,000 of account balance:
| Age | Distribution Period | RMD per $100,000 | Effective Rate |
|---|---|---|---|
| 73 | 26.5 | $3,774 | 3.77% |
| 74 | 25.5 | $3,922 | 3.92% |
| 75 | 24.6 | $4,065 | 4.07% |
| 76 | 23.7 | $4,219 | 4.22% |
| 77 | 22.9 | $4,367 | 4.37% |
| 78 | 22.0 | $4,545 | 4.55% |
| 79 | 21.1 | $4,739 | 4.74% |
| 80 | 20.2 | $4,950 | 4.95% |
| 85 | 16.0 | $6,250 | 6.25% |
| 90 | 12.2 | $8,197 | 8.20% |
| 95 | 8.9 | $11,236 | 11.24% |
As you age, the distribution period shrinks and the effective withdrawal rate climbs. By age 90, you’re required to withdraw over 8% of your balance each year — which is why starting Roth conversions well before age 73 can save tens of thousands in lifetime taxes. For a deeper look at the complete IRS tables and edge cases, see our required minimum distributions guide.
When Do RMDs Start?
| Birth Year | RMD Starting Age | First RMD Deadline |
|---|---|---|
| 1950 or earlier | 72 | Already started |
| 1951–1959 | 73 | Year you turn 73 |
| 1960 or later | 75 | Year you turn 75 |
Your first RMD can be delayed until April 1 of the year after you turn the required age — but then you must take two RMDs that year (which could push you into a higher tax bracket). For most retirees, taking the first distribution in the actual year you turn 73 avoids the double-RMD problem. If you’re still working and your full retirement age is a few years away, you may qualify for a still-working exception on employer-plan accounts (but not IRAs).
Which Accounts Require RMDs?
| Account Type | RMDs Required? | Notes |
|---|---|---|
| Traditional IRA | Yes | At age 73 (75 from 2033) |
| Traditional 401k | Yes | At 73, unless still working for that employer |
| 403b | Yes | Same rules as 401k |
| SEP IRA | Yes | Same as Traditional IRA |
| SIMPLE IRA | Yes | Same as Traditional IRA |
| Roth IRA | No | No RMDs during owner’s lifetime |
| Roth 401k | No | Changed under SECURE 2.0 (no RMDs from 2024+) |
| Inherited IRA | Yes | 10-year rule for most non-spouse beneficiaries |
The difference between Roth and traditional accounts is one of the most important planning decisions in retirement. If you haven’t already, compare the Roth IRA vs Traditional IRA and 401(k) vs Roth IRA to understand how each account type handles RMDs, taxes, and estate planning.
RMD Calculation Examples
The formula is simple: divide your prior-year-end account balance by the IRS distribution period for your current age. If you hold multiple traditional IRAs, you can aggregate the total RMD and take it from any one or combination of IRAs — but 401(k) RMDs must be taken separately from each plan.
Example 1: Age 75, $500,000 Balance
| Item | Value |
|---|---|
| Account balance (Dec 31 prior year) | $500,000 |
| Distribution period (age 75) | 24.6 |
| RMD | $20,325 |
At the 2026 federal tax brackets, this $20,325 would be taxed as ordinary income on top of any Social Security benefits and other retirement income.
Example 2: Age 80, $750,000 Balance
| Item | Value |
|---|---|
| Account balance (Dec 31 prior year) | $750,000 |
| Distribution period (age 80) | 20.2 |
| RMD | $37,129 |
Example 3: Age 85, $400,000 Balance
| Item | Value |
|---|---|
| Account balance (Dec 31 prior year) | $400,000 |
| Distribution period (age 85) | 16.0 |
| RMD | $25,000 |
RMD Penalty for Missing a Withdrawal
| Situation | Penalty |
|---|---|
| Missed RMD (not corrected) | 25% of the amount not withdrawn |
| Missed RMD (corrected within 2 years) | 10% of the amount not withdrawn |
| Took less than required | Penalty applies to the shortfall |
Under the SECURE 2.0 Act, the penalty was reduced from 50% to 25% (or 10% with timely correction). This is still substantial — don’t miss your RMD. Set a calendar reminder each year or arrange automatic distributions through your IRA custodian or 401(k) plan.
Inherited IRA RMD Rules (2026)
The SECURE 2.0 Act significantly changed inherited IRA rules. Who inherited the account and when matters enormously:
| Beneficiary Type | Distribution Rule | Deadline |
|---|---|---|
| Surviving spouse | Can roll into own IRA, delay RMDs to their own age 73 | Flexible |
| Minor child of owner | Annual RMDs until majority, then 10-year rule applies | Until majority + 10 years |
| Disabled/chronically ill | Stretch distributions over life expectancy | Lifetime |
| Sibling within 10 years of age | Stretch distributions over life expectancy | Lifetime |
| All other beneficiaries (EDBs rule) | 10-year rule: full balance by December 31 of year 10 | 10 years from death |
The 10-year rule for most beneficiaries: If you inherited an IRA from someone who died after December 31, 2019, and you don’t qualify as an eligible designated beneficiary, you must withdraw the entire balance by December 31 of the 10th year after the owner’s death. You can take distributions in any amount and at any time — just empty the account within 10 years.
Critical 2024-2025 update: The IRS issued proposed regulations (2022) suggesting non-EDB beneficiaries who inherited from owners who had already started RMDs must take annual RMDs in years 1-9 AND empty the account by year 10. After confusion and multiple penalty waivers, these rules are now in effect for 2025 and beyond. Consult a tax advisor if you inherited post-2019.
Inherited Roth IRA: Better Tax Treatment
| Feature | Inherited Traditional IRA | Inherited Roth IRA |
|---|---|---|
| Taxes on distributions | Ordinary income tax | Tax-free (if Roth was 5+ years old) |
| Annual RMD requirement | Usually yes (for non-spouse) | No annual RMDs required |
| 10-year rule | Yes (for most) | Yes, but distributions tax-free |
| Best strategy | Take distributions in low-income years | Wait until year 10 to withdraw (maximize tax-free growth) |
Roth 401(k) and RMD Changes (SECURE 2.0)
A significant SECURE 2.0 change: Roth 401(k) accounts no longer have RMDs starting in 2024. Prior to this change, Roth 401(k) accounts (unlike Roth IRAs) required RMDs beginning at age 73. This is now eliminated.
| Account Type | RMD Required? | Notes |
|---|---|---|
| Traditional 401(k) | Yes, at 73 | Roll to IRA to simplify |
| Roth 401(k) | No (as of 2024) | Major SECURE 2.0 benefit |
| Traditional IRA | Yes, at 73 | Per account basis |
| Roth IRA | No | Never requires RMDs for original owner |
| SEP IRA | Yes, at 73 | Same rules as Traditional IRA |
| SIMPLE IRA | Yes, at 73 | Same rules as Traditional IRA |
Rollover strategy: Many financial advisors recommend rolling a traditional 401(k) into a traditional IRA at or before retirement to consolidate accounts and simplify RMD tracking — you only need to calculate one RMD instead of one per plan.
Common RMD Mistakes and How to Avoid Them
1. Using the wrong prior year-end balance Your RMD for 2026 is based on your December 31, 2025 balance — not your current balance. Get the official statement from your custodian.
2. Forgetting multiple accounts You must calculate RMDs for each traditional IRA separately, then can aggregate and withdraw from one or more. But 401(k) RMDs cannot be aggregated — each plan requires its own withdrawal.
3. Missing the first-year deadline option In your first year of RMDs (age 73), you can delay until April 1 of the following year. However, this means you’ll take two RMDs in one year, potentially pushing you into a higher bracket. Many advisors recommend taking the first RMD in the year you turn 73 to avoid this double-hit.
4. Not adjusting for a spouse more than 10 years younger If your spouse is more than 10 years younger and is your sole beneficiary, you use the Joint Life Expectancy Table instead of the Uniform Lifetime Table — resulting in a smaller required withdrawal each year.
5. Missing QCD opportunities A Qualified Charitable Distribution (QCD) lets you send up to $105,000 per year directly from your IRA to a qualified charity. The amount counts toward your RMD but is excluded from your AGI — potentially reducing your Medicare premiums (IRMAA) and Social Security taxation.
Strategies to Minimize RMD Tax Impact
RMDs are unavoidable, but their tax cost is not fixed. Planning ahead — ideally starting in your 50s or early 60s — can significantly reduce the cumulative tax burden over a 20–30 year retirement. Here are the most effective strategies:
| Strategy | How It Works |
|---|---|
| Roth conversions before 73 | Convert Traditional IRA money to Roth in lower-income years to reduce future RMDs |
| Qualified Charitable Distribution (QCD) | Donate up to $105,000 directly from IRA to charity — counts toward RMD but isn’t taxable |
| Spread withdrawals across the year | Monthly withdrawals instead of one lump sum for better tax planning |
| Reinvest in taxable accounts | Take the RMD but reinvest in a brokerage account for continued growth |
| Start withdrawals before 73 | Voluntary withdrawals in low-income years (e.g., early retirement) to reduce balances |
The Roth conversion strategy is especially powerful during the gap years between early retirement and RMD age. If your income drops after leaving work but before Social Security kicks in, you may sit in a low tax bracket — the ideal time to convert traditional balances to Roth. Check our Roth conversion ladder guide for a step-by-step walkthrough.
Qualified Charitable Distributions (QCDs) are another powerful tool. If you’re already donating to charity, routing those gifts through a QCD satisfies your RMD without adding a dollar to your adjusted gross income.
RMDs and Social Security
Your RMD counts as ordinary income, which can:
- Push you into a higher tax bracket
- Increase taxes on Social Security benefits (up to 85% can become taxable)
- Increase Medicare Part B and D premiums (IRMAA surcharges)
This makes pre-retirement Roth conversions especially valuable — they reduce future RMD-driven tax spikes. If you’re trying to decide when to claim Social Security, factor in your projected RMD income: delaying Social Security to 70 while drawing down traditional accounts in your 60s can lower your lifetime RMD tax burden.
For a broader view of how all retirement income sources interact, use our retirement income calculator to model different withdrawal sequences.
RMDs and Estate Planning
RMDs don’t just affect your taxes — they affect how much you leave behind. Every dollar withdrawn from a traditional account is taxed in your hands, but assets left in the account at death pass to heirs through beneficiary designations and are subject to the 10-year distribution rule under the SECURE Act.
That means your heirs may face large taxable distributions during their peak earning years. Strategies to consider:
- Convert to Roth before death — Roth IRAs have no RMDs and pass tax-free to heirs
- Name a trust as beneficiary — useful for special needs planning or minor children
- Coordinate with your estate plan — make sure beneficiary designations align with your will and trust
- Review inheritance tax rules — some states impose separate inheritance taxes on retirement account proceeds
Bottom Line
RMDs are unavoidable for traditional retirement accounts, but you can plan ahead to minimize their tax impact. The key strategies are: convert to Roth before RMDs begin, use QCDs for charitable giving, and coordinate withdrawals with Social Security for optimal tax efficiency.
Start planning at least 5–10 years before your RMD age. If you’re currently saving for retirement, check where you stand with our retirement savings calculator or average retirement savings by age benchmarks — the more you know now, the better you can structure withdrawals later.
Related Resources
- Required Minimum Distributions Guide — complete IRS rules and tables
- Roth Conversion Ladder — reduce future RMDs with strategic conversions
- Retirement Income Calculator — model your withdrawal strategy
- How Tax Brackets Work — understand how RMDs affect your marginal rate
- Social Security Tax Guide — how RMDs trigger taxes on benefits
- When to Claim Social Security — coordinate claiming with RMD planning
- IRA Withdrawal Rules — early withdrawal penalties vs RMD requirements
- Best IRA Accounts — where to hold your IRA for easy RMD management
- Beneficiary Designation Guide — make sure your accounts pass correctly
- Estate Planning Documents — coordinate RMDs with your broader plan
Sources
- Internal Revenue Service. “Retirement Plans — Contribution Limits and Benefits.” irs.gov/retirement-plans
- U.S. Department of Labor. “Wages and the Fair Labor Standards Act.” dol.gov/agencies/whd/flsa
- Social Security Administration. “Benefits and Eligibility Information.” ssa.gov/benefits
- Centers for Medicare & Medicaid Services. “Medicare Program Information.” medicare.gov
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