RMD Rules in 2026: What Retirees Need to Know Now

Waypoint Wealth ServicesSeptember 17, 20267 min read

Required minimum distributions in 2026 start at age 73 for most traditional IRA and 401(k) owners — and at age 75 for anyone born in 1960 or later. Missing a deadline costs you up to 25% of the amount you should have withdrawn. With the year-end clock ticking, here is a clear look at how the current rules work, what has changed under SECURE 2.0, and a few planning moves worth knowing about before December 31.

The Starting Age Depends on When You Were Born

The age at which RMDs begin has shifted twice in recent years, which has created real confusion about who is actually required to act this year. Under the SECURE 2.0 Act, the required beginning date was raised from age 72 to age 73 for those born between 1951 and 1959. Individuals born in 1960 or later will not face mandatory distributions until age 75 — a rule that takes full effect in 2033 but is relevant to anyone planning ahead today.

Your first RMD must be taken by April 1 of the year after you reach your applicable RMD age. Every subsequent distribution is due by December 31 of that calendar year. One important wrinkle: if you delay your first RMD to take advantage of that April 1 grace period, you will owe two distributions in the same year — one by April 1 and one by December 31 — which can meaningfully increase your taxable income for that year.

For those still working past age 73, a narrow exception applies. If you do not own 5% or more of the business sponsoring your current employer's plan, you may be able to delay RMDs from that specific plan until the year you retire. This exception does not apply to IRAs or accounts held with prior employers.

A Significant Change: Roth 401(k)s No Longer Trigger RMDs

One of the more practical changes under SECURE 2.0 — and one many people still are not aware of — is that Roth accounts inside employer plans are no longer subject to required minimum distribution rules during the account owner's lifetime. Starting with distributions for 2024, designated Roth accounts in 401(k), 403(b), and governmental 457(b) plans can be disregarded entirely when calculating your annual RMD amount.

Before this change, the Roth balance inside a 401(k) was lumped in with pre-tax dollars when the plan calculated what you were required to withdraw. That forced some retirees to pull money out of their Roth balance even when they had no tax or income need to do so. That inconsistency is now resolved. Roth IRAs have always been exempt from lifetime RMDs, and Roth 401(k) accounts now align with that treatment. Post-death distribution rules still apply to beneficiaries, so this change affects the original account owner only.

The Penalty for Missing an RMD

The cost of a missed distribution is steep. The IRS will impose a penalty of up to 25% of the amount that should have been withdrawn. That figure was reduced from 50% under SECURE 2.0, but it remains a significant hit on money you were already required to take out. There is a partial remedy: if you correct the failure by taking the missed withdrawal and filing IRS Form 5329 with an explanation, the penalty may be reduced to 10%. Catching the error quickly matters.

For ongoing distributions, the math is straightforward: your annual RMD equals your prior December 31 account balance divided by an IRS life-expectancy factor from the Uniform Lifetime Table. Each year's calculation uses the prior year-end balance, so the amount fluctuates as account values change.

One Planning Tool Worth Knowing: Qualified Charitable Distributions

For those who give to charity and are at least 70½ years old, a qualified charitable distribution (QCD) allows a direct transfer from a traditional IRA to a qualified nonprofit — and the amount transferred is excluded from your taxable income entirely. The 2026 annual QCD limit is $111,000 per individual, up from $108,000 in 2025. Married couples each filing from their own IRA can transfer up to $222,000 combined.

A QCD counts toward satisfying your RMD for the year, which makes it one of the only ways to meet a distribution requirement without adding to your taxable income. That matters for retirees watching income thresholds tied to Medicare premiums or the taxation of Social Security benefits, where even a modest increase in adjusted gross income can have outsized effects. The transfer must go directly from the IRA custodian to the charity — if you withdraw the funds and write a personal check, the distribution becomes taxable. Donor-advised funds and private foundations are not eligible recipients under current IRS rules.

A QCD does not just satisfy a charitable goal — it reduces adjusted gross income in ways a standard deduction cannot, which can affect Medicare premiums and the taxability of Social Security in the same year.

The QCD age of 70½ is fixed and did not change under SECURE 2.0, which means you can begin using QCDs to reduce your IRA balance up to three years before RMDs actually begin. For anyone who expects significant required distributions in future years, using QCDs proactively during that window is a planning option worth evaluating with your advisor.

A Few Things to Double-Check Before Year-End

With December 31 as the hard deadline for most RMDs, the fourth quarter is a reasonable time to review a few things. Confirm whether you have multiple IRAs or employer accounts, since each type has its own aggregation rules. Verify that your year-end account balance from last December 31 is being used in any calculation. If you turned 73 this year and are taking your first RMD, decide whether delaying to April 1 of next year actually makes sense for your tax situation — or whether taking it now keeps next year's income picture cleaner.

If you have inherited an IRA, note that the rules for beneficiaries differ meaningfully from the rules that apply to original account owners. The 10-year rule and other post-death distribution requirements apply in ways that are worth reviewing separately.

Common questions

At what age do RMDs start in 2026?

For most people, RMDs begin at age 73. That applies to individuals born between 1951 and 1959. If you were born in 1960 or later, your required beginning date is age 75, a change that takes full effect in 2033 under the SECURE 2.0 Act.

Do Roth 401(k)s require minimum distributions in 2026?

No. Starting with distributions for the 2024 tax year, designated Roth accounts inside employer plans — including Roth 401(k) and Roth 403(b) accounts — are no longer subject to lifetime RMD rules. Roth IRAs have never required lifetime distributions. Beneficiaries who inherit these accounts still face post-death distribution requirements.

What is a qualified charitable distribution and how does it reduce taxes?

A qualified charitable distribution (QCD) is a direct transfer from a traditional IRA to a qualified nonprofit organization. For IRA owners who are at least 70½, a QCD is excluded from taxable income and counts toward satisfying the annual RMD. The 2026 limit is $111,000 per individual. Because the transfer bypasses gross income entirely, it can help manage Medicare premium thresholds and Social Security taxation in ways that a standard charitable deduction cannot.

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This article is for educational purposes only and does not constitute financial, tax, or legal advice. Individual circumstances vary. Please consult qualified professionals for advice specific to your situation.