If you have money in a traditional IRA, 401(k), or most other retirement accounts, the IRS has rules about when you must start taking it out — and paying taxes on it.
Those rules are called Required Minimum Distributions. And in 2026, there are several things every retiree needs to know.
A Required Minimum Distribution is the minimum amount the IRS requires you to withdraw from certain retirement accounts each year once you reach a specific age.
The government gave you a tax break when you contributed to your traditional IRA or 401(k) — the money went in before taxes. The RMD rules are how the IRS eventually collects on that deferred tax.
Under the SECURE 2.0 Act (signed into law in 2022), the RMD starting age is 73 for anyone who turned 72 after December 31, 2022.
The age increases to 75 for anyone who turns 74 after December 31, 2032.
Quick reference:
RMDs apply to:
Roth IRAs are NOT subject to RMDs during the owner's lifetime. This is one of the primary reasons Roth conversions are such a powerful retirement tax strategy.
Roth 401(k)s were subject to RMDs until 2024, when SECURE 2.0 eliminated that requirement.
Your RMD is calculated by dividing your account balance (as of December 31 of the prior year) by a life expectancy factor from the IRS Uniform Lifetime Table.
Example:
That $16,260 is added to your taxable income for 2026 — whether you need the money or not.
If you have multiple IRAs, you calculate the RMD for each account but can take the total from any one or combination of IRAs. For 401(k)s, you must take a separate RMD from each account.
Before SECURE 2.0: the penalty was 50% of the amount you should have withdrawn.
Under SECURE 2.0 (effective 2023): the penalty is 25% of the missed RMD amount — reduced to 10% if you correct the shortfall within two years.
Either way, this is one of the most expensive and most avoidable retirement mistakes. Missing a $16,000 RMD costs you $4,000 in penalties — on top of the income tax you'll owe when you do take it.
Yes. The RMD is a floor, not a ceiling. You can always withdraw more than the required minimum. Many people do, especially in years when their tax bracket allows it.
Strategic over-withdrawal in lower-income years — combined with a Roth conversion plan — is a legitimate and powerful way to reduce lifetime taxes.
No. You must withdraw it from the retirement account and pay taxes on it. What you do with the money after that is up to you. Many people reinvest it in a taxable brokerage account.
A Qualified Charitable Distribution allows you to transfer up to $105,000 (indexed for inflation) per year directly from your IRA to a qualifying charity — and it counts toward your RMD without being included in your taxable income.
For retirees who are charitably inclined, a QCD is one of the most efficient tax moves available. It satisfies your RMD obligation without adding to your adjusted gross income — which also protects your Social Security benefit and Medicare premiums.
RMDs are included in your adjusted gross income (AGI). A higher AGI can:
This is why the years between retirement and RMD age are often the most important for tax planning. Strategic Roth conversions during this window can dramatically reduce the impact of RMDs later.
If you're within 10 years of your RMD start date — or already taking RMDs — you should have a personalized projection in hand. Not a general calculator. A real analysis of your accounts, your income, and your tax exposure.
Summit Tax Services offers a free RMD Analysis Report. We calculate your projected distributions year by year, show you the estimated tax cost, and identify strategies that may reduce your lifetime tax burden.
It's free. It takes 2 minutes to request. And it may be the most valuable document you read this year.
Frequently Asked Questions
Q: What is the RMD age for 2026? The RMD beginning age in 2026 is 73 for taxpayers born between 1951 and 1959, and 75 for those born in 1960 or later, under the SECURE 2.0 Act.
Q: What is the penalty for not taking an RMD? The penalty for failing to take a Required Minimum Distribution is 25% of the amount not withdrawn, reduced to 10% if corrected within two years.
Q: Are Roth IRAs subject to RMDs? No. Roth IRAs are not subject to Required Minimum Distributions during the account owner's lifetime. This is a major advantage of Roth accounts in retirement.
Q: Can I avoid RMDs? You cannot avoid RMDs from traditional IRAs entirely, but you can reduce their impact through Roth conversions before your RMD start date, Qualified Charitable Distributions, and strategic income planning.
Summit Tax Services provides retirement tax planning and analysis services. This article is for educational purposes only and does not constitute tax or financial advice. Consult a qualified professional before making retirement planning decisions.