Required Minimum Distributions in 2026: RMD Age, Deadlines, and How to Lower the Tax Bill
For many retirees, required minimum distributions are the first time a retirement account stops feeling entirely under their control. The government gave traditional IRAs and workplace retirement plans tax-deferred treatment for decades. Eventually, it requires taxable withdrawals. The rules are manageable, but a missed deadline or poorly coordinated withdrawal can create an unnecessary tax bill, a penalty, or both.
The most useful way to approach an RMD is not as an isolated annual chore. It should be part of a broader retirement-income plan that considers taxes, investment risk, charitable goals, cash reserves, and the legacy you intend to leave.
When do required minimum distributions start?
RMDs start at age 73 if you were born from 1951 through 1959, and at age 75 if you were born in 1960 or later. If you reached RMD age under earlier rules, your starting age may have been 70½ or 72.
Your first RMD has a special deadline: April 1 of the year after the year you reach your applicable RMD age. Every RMD after that is due by December 31 of the calendar year.
That April deadline sounds helpful, but delaying the first withdrawal often means taking two taxable distributions in the same year: the delayed first RMD and the next year’s RMD. For a household near a higher tax bracket, Medicare income-related premium threshold, or capital-gains threshold, that timing decision deserves careful attention. Taking the first distribution by December 31 of the year you become subject to RMDs is often cleaner, though not always the best choice.
Which accounts require RMDs?
Traditional IRAs, SEP IRAs, SIMPLE IRAs, 401(k)s, 403(b)s, and many other employer plans require RMDs. Roth IRAs do not require lifetime distributions for the original owner. Beginning in 2024, designated Roth accounts in employer plans, such as Roth 401(k)s, also no longer carry lifetime RMDs for the original owner.
If you are still working, your current employer’s plan may let you delay RMDs from that plan until you retire, as long as you don’t own more than 5% of the company. This “still working” exception does not apply to IRAs or to plans from former employers.
How is an RMD calculated?
Divide the account’s December 31 balance from the prior year by the life-expectancy factor for your age in the applicable IRS table. Most account owners use the Uniform Lifetime Table. A different table, the Joint Life and Last Survivor Expectancy Table, applies if your sole beneficiary is a spouse who is more than 10 years younger.
For example, assume your traditional IRA was worth $750,000 on December 31 of the prior year and you turn 75 this year. The Uniform Lifetime Table factor for age 75 is 24.6. Dividing $750,000 by 24.6 produces an RMD of approximately $30,488. That amount is taxable as ordinary income unless part of the account consists of after-tax contributions that have been properly documented.
The calculation is only the starting point. Market changes during the current year do not reduce the amount required, even if the account value falls after January 1. This is one reason retirees should avoid waiting until the final days of December to address an RMD. A market decline, a processing delay, or an overlooked account can turn a simple task into a stressful year-end problem.
Can I combine RMDs from multiple accounts?
It depends on the account type. If you own multiple traditional IRAs, you calculate each IRA’s RMD separately but may take the combined total from one or more of those IRAs. The same aggregation rule applies among multiple 403(b) accounts.
401(k)s and most other employer plans are different: each plan’s RMD generally must be taken from that specific plan. An IRA withdrawal cannot satisfy a 401(k) RMD, and a 403(b) withdrawal cannot satisfy an IRA RMD. Treat each account type carefully instead of assuming all retirement balances can be combined.
How do RMDs affect my taxes?
An RMD is taxed as ordinary income, and the extra income can ripple well beyond your federal tax bracket. It can increase the taxable portion of Social Security, raise Medicare Part B and Part D premiums in a future year, and reduce the value of certain deductions or credits.
Florida residents do not face a state income tax, which simplifies the picture for Sarasota retirees. Families who split time between states, or who may move in retirement, should consider where income is taxed and when. A move, a business sale, or a large capital gain can change the best timing for distributions.
Withholding taxes from an RMD can help prevent an unpleasant April surprise. Retirement-plan withholding is generally treated as if it were paid evenly throughout the year, even when withheld late in the year. That feature can be useful, but it should not replace a thoughtful estimate of your annual tax liability.
Can Roth conversions reduce future RMDs?
Yes. The years after retirement but before RMDs begin are often a valuable planning window. If taxable income is temporarily lower, partial Roth conversions let you move a measured amount from a traditional account into a Roth account, pay tax deliberately, and reduce future RMDs. The converted amount is taxable in the conversion year, so this is not a universal answer. It is a trade-off between taxes paid now and flexibility later.
A sound conversion analysis considers more than your current tax bracket. It should account for expected future income, Social Security, pension income, Medicare premiums, investment returns, charitable plans, and the likelihood that one spouse will eventually file as a single taxpayer. The surviving spouse may face higher tax rates at lower income levels after the first spouse dies.
Can I give my RMD to charity?
Yes, through a qualified charitable distribution (QCD). Starting at age 70½, which is earlier than RMD age, an IRA owner can direct up to $111,000 in 2026 from an IRA straight to a qualified charity. Once you reach RMD age, a properly executed QCD can satisfy all or part of your RMD without increasing adjusted gross income.
Keeping the gift out of AGI is often more valuable than taking a taxable distribution and claiming a charitable deduction. Beginning in 2026, non-itemizers can deduct up to $1,000 ($2,000 for married couples filing jointly) in cash gifts, and itemizers face a new floor of 0.5% of AGI on charitable deductions. A QCD sidesteps both limits.
The rules are specific. The funds must go directly from the IRA custodian to the eligible charity. QCDs are available only from IRAs, not from 401(k)s, 403(b)s, or other employer plans. Donor-advised funds and private foundations don’t qualify as recipients.
Should I sell investments to cover my RMD?
Only if the sale also fits your portfolio’s plan. Retirees sometimes sell investments simply because an RMD is due. That can be appropriate if the sale also supports the portfolio’s risk-management plan, but the withdrawal requirement should not be the only reason for an investment decision.
A disciplined strategy typically maintains enough cash or short-term reserves to meet planned withdrawals without forcing sales during a market decline. It also reviews which holdings are being sold, whether gains or losses can be managed thoughtfully in taxable accounts, and whether the portfolio remains aligned with the household’s objectives. You can also take an RMD “in kind” by moving shares to a taxable account instead of selling them, though the value is still taxable income.
This is particularly relevant when markets are volatile. Protecting a retirement plan is not the same as avoiding all market risk. It means making intentional decisions about risk, liquidity, and return potential rather than reacting to a December deadline.
What are the RMD rules for inherited IRAs?
Inherited IRAs and inherited employer plans follow a separate, highly technical set of rules. The answer depends on the date of the original owner’s death, whether the owner had reached their required beginning date, the beneficiary’s relationship to the owner, and whether the beneficiary qualifies as an eligible designated beneficiary.
Many non-spouse beneficiaries must empty the account within 10 years. That does not always mean they can wait until year 10 to withdraw everything. If the original owner died on or after their required beginning date, annual distributions are also required in years one through nine. The IRS waived penalties for missed annual withdrawals from 2021 through 2024, but that relief ended, and the annual requirement has been enforced since 2025.
Eligible designated beneficiaries may have different options. They include a surviving spouse, a minor child of the account owner, a disabled or chronically ill beneficiary, and a beneficiary not more than 10 years younger than the owner.
Inherited-account mistakes can be expensive because the rules have changed several times in recent years. Before taking or delaying an inherited-account withdrawal, confirm the facts with the custodian and a qualified tax or financial professional.
What should I check before the December 31 RMD deadline?
Before December 31, verify these four items:
- Confirm every IRA and employer plan that has an RMD requirement, including accounts you may no longer actively monitor.
- Review the custodian’s calculated amount, your beneficiary information, and the correct life-expectancy table.
- Decide whether distributions should be taken monthly, quarterly, or in a single planned withdrawal.
- Coordinate the withdrawal with estimated taxes, withholding, charitable gifts, and your broader cash-flow needs.
What is the penalty for missing an RMD?
The excise tax is generally 25% of the amount you failed to withdraw. It drops to 10% if you take the missed distribution and file a corrected return within the correction window, which is generally two years. The IRS can also waive the penalty entirely for reasonable cause if you file Form 5329 with an explanation and have taken the missed amount.
If a mistake occurs, act promptly, document the correction, and seek professional guidance rather than assuming it will resolve itself.
The bottom line
Required minimum distributions are not a reason to abandon long-term planning. They are a reason to make that planning more precise. A fiduciary advisor should help you see the full picture: what you must withdraw, what you may choose to withdraw, how taxes affect both decisions, and how your portfolio can continue serving the people and purposes that matter most.
About Byron L. Studdard, CFP®
Byron L. Studdard is a CERTIFIED FINANCIAL PLANNER® professional and the founder of Studdard Financial – a fee-only fiduciary registered investment adviser serving clients from coast to coast from offices in Sarasota, FL and Germantown (Memphis), TN. For more than thirty years, he has provided personalized investment advice, retirement planning guidance, social security maximization strategies, and intergenerational wealth-transfer support to clients seeking disciplined, trustworthy financial oversight. His writing has been featured on the websites of ABC News, Good Morning America, and Yahoo. He can be reached at Byron@StuddardFinancial.com.
Important Disclosures:
All information provided is for educational purposes only and does not constitute investment, legal or tax advice; an offer to buy or sell any security or insurance product; or an endorsement of any third party or such third party’s views. The information contained herein has been obtained from sources we believe to be reliable but is not guaranteed to be accurate or complete. Studdard Financial, LLC does not offer tax or legal advice, but might refer clients to independent accounting, tax, or legal professionals.
Whenever there are referrals to other professional advisors, or references or hyperlinks to third-party content (including but not limited to tax and legal), this is intended to provide additional perspective and should not be construed as an endorsement of any services, products, guidance, individuals, or points of view. All examples are hypothetical and for illustrative purposes only. Please contact us for more complete information based on your personal circumstances and to obtain personal individual investment advice.
Carefully consider your investment objectives, risk factors, and charges and expenses before investing. Investing involves risk, including possible loss of principal. Consult your own advisor about the implications of investing. Diversification and asset allocation may not protect against market risk. Past performance is never a guarantee of future returns. Investing in foreign stock markets involves additional risks, such as the risk of currency fluctuations.
Not FDIC Insured No Bank Guarantee May Lose Value
Copyright Studdard Financial © 2026 · All Rights Reserved
