What RMDs Are and Why They Exist
Required Minimum Distributions (RMDs) are mandatory annual withdrawals that the IRS requires from traditional (pre-tax) retirement accounts once you reach a certain age. Traditional IRAs, SEP IRAs, SIMPLE IRAs, and most employer-sponsored plans (401(k), 403(b), 457(b)) are subject to RMDs. The rationale: these accounts received tax-deferred treatment during accumulation (no tax when money went in). The IRS eventually wants its tax revenue — RMDs force distributions (which are taxable as ordinary income) to ensure the tax deferral doesn't become a permanent tax avoidance.
RMD Starting Age — 73 in 2026
The SECURE 2.0 Act raised the RMD starting age to 73 for people who turn 72 after December 31, 2022. (The age will increase to 75 for people who turn 74 after December 31, 2032.) For someone turning 73 in 2026, RMDs must begin by April 1, 2027 (the "required beginning date"). The April 1 deadline applies only to the first RMD — all subsequent RMDs are due by December 31 of each year. If you delay the first RMD to April 1 of the following year, you'll take two RMDs in that year (the first and the second), which can create a larger tax impact.
How RMDs Are Calculated
RMD = (Account balance on December 31 of prior year) ÷ (IRS life expectancy factor from Uniform Lifetime Table). The Uniform Lifetime Table (in IRS Publication 590-B) provides a distribution period based on your age. For a 73-year-old in 2026, the factor is 26.5 — so a $530,000 IRA balance would generate an RMD of $530,000 ÷ 26.5 = $20,000. As you age, the factor decreases (shorter expected remaining life), and the RMD as a percentage of account balance increases. If your sole beneficiary is a spouse more than 10 years younger, you use the more favorable Joint Life Expectancy Table, which produces smaller RMDs.
When RMDs Are Due
First RMD: by April 1 of the year after you turn 73. All subsequent RMDs: by December 31 of each year. If you have multiple IRA accounts, you calculate the RMD separately for each but can take the total from any combination of your IRAs. For 401(k)s and similar employer plans, the RMD for each plan must generally be taken from that specific plan separately (you can't aggregate across plans the way you can with IRAs).
Which Accounts Require RMDs
Accounts requiring RMDs: traditional IRAs, SEP IRAs, SIMPLE IRAs, 401(k) plans, 403(b) plans, 457(b) governmental plans, and most other employer-sponsored defined contribution plans. Inherited IRAs have their own RMD rules that changed significantly under SECURE 2.0 — most non-spouse beneficiaries must empty inherited IRAs within 10 years. Accounts NOT requiring RMDs during the owner's lifetime: Roth IRAs, Roth 401(k)s (beginning in 2024 under SECURE 2.0).
Roth IRAs — The Exception
Roth IRAs are not subject to RMDs during the owner's lifetime — one of their most valuable estate planning features. Money in a Roth can continue growing tax-free indefinitely, passed to heirs without triggering an RMD. This is why some retirement planners recommend Roth conversions in the years before RMDs begin — converting traditional IRA funds to Roth reduces future RMD amounts (lowering tax in RMD years) and allows the converted amounts to grow tax-free indefinitely.
Tax Impact of RMDs
RMDs are taxed as ordinary income in the year taken. For many retirees, RMDs push them into higher tax brackets than they'd otherwise be in — particularly when added to Social Security income and other retirement income. RMDs also affect: Medicare premiums (high income triggers IRMAA surcharges on Part B and D premiums); the taxability of Social Security benefits (higher income means more SS benefits are taxable); and SNAP and other income-tested program eligibility. Planning for the tax impact of RMDs in advance — ideally starting at age 60–65 — can significantly reduce lifetime taxes.
Strategies to Manage RMDs
Qualified Charitable Distributions (QCDs): IRA owners age 70½+ can transfer up to $105,000/year directly from an IRA to a qualified charity. The amount satisfies RMD obligations but is not included in gross income — avoiding tax on the charitable gift entirely. Roth conversions before RMDs: Converting traditional IRA funds to Roth in lower-income years (before RMDs begin or in gaps between work income and RMD start) reduces future RMD amounts. Work longer: If still working at 73, employer plan (401k) RMDs can be delayed until retirement (with limitations). Invest RMDs: If you don't need the income, reinvest RMDs in taxable accounts — after paying the tax, the funds continue growing.