A required minimum distribution (RMD) is the least amount the IRS generally requires you to withdraw each year from most tax-deferred retirement accounts once you reach a certain age. For most people now retiring, that age is 73 or 75, depending on birth year. Withdrawals are generally taxable income, so planning in the years before RMDs begin can matter as much as the calculation itself.
When do RMDs start?
Under SECURE 2.0, the starting age depends on when you were born [1].
| Birth year | RMD starting age |
|---|---|
| 1951 to 1959 | 73 |
| 1960 or later | 75 |
SECURE 2.0 was drafted unclearly for 1959. IRS proposed regulations set the age at 73, pending final rules [1].
Your first RMD can wait until April 1 of the year after you reach your starting age. You then owe a second RMD by December 31 of that same year [2]. Taking the first one in the year you reach the age keeps two taxable withdrawals out of one tax year.
Which accounts have RMDs?
According to the IRS, the rules apply to traditional, SEP and SIMPLE IRAs, 401(k), 403(b) and 457(b) plans, profit-sharing plans and other defined contribution plans. Roth IRAs, and designated Roth accounts in workplace plans, have no RMDs during the owner's lifetime. Beneficiaries of those accounts are subject to the rules [2].
If you are still working, your employer plan may let you delay RMDs from that plan until you retire, unless you own 5% or more of the sponsoring business. The plan document governs, and the delay does not apply to IRAs [3].
How is the amount calculated?
Each year's RMD is your account balance on December 31 of the prior year divided by a life-expectancy factor from the IRS Uniform Lifetime Table. Different tables apply if your sole beneficiary is a spouse more than 10 years younger [3][4].
Hypothetical example for illustration only: An account owner turns 73 with a $1,000,000 IRA balance on the prior December 31. The Uniform Lifetime Table factor for age 73 is 26.5. The RMD is $1,000,000 divided by 26.5, or about $37,700. The next year's calculation uses the new year-end balance and the factor for age 74. This shows the mechanics only and does not predict any account's value.
What happens if you miss an RMD?
The IRS describes an excise tax of 25% on the amount not withdrawn as required. It drops to 10% if you correct the shortfall within the IRS correction window, generally about two years. The IRS may waive the penalty if the shortfall was due to reasonable error and you are taking steps to correct it. You file Form 5329 to report the tax or to request a waiver with an explanation [3].
How can RMDs affect the rest of your plan?
An RMD counts as taxable income whether you need the money or not. That extra income can show up in places people don't always expect.
- Social Security taxes. The IRS adds half of your Social Security benefits to your other income, including tax-exempt interest. Once that total passes $25,000 for single filers or $32,000 for joint filers, part of your benefit becomes taxable. Above $34,000 ($44,000 joint), up to 85% of your benefits can be taxable [5]. A larger RMD can push more of your benefit into that range.
- Medicare premiums. Higher-income Medicare enrollees pay an extra amount, called IRMAA, on top of standard Part B and Part D premiums. Social Security generally looks at your tax return from two years earlier, so 2026 premiums are based on 2024 income. For 2026, the extra charge starts when modified adjusted gross income is above $109,000 for single filers or $218,000 for joint filers [6]. A high-income year today can raise your Medicare bill two years from now.
- Tax brackets over time. The life-expectancy factor gets smaller each year, so you have to withdraw a bigger share of the account as you age. Added to Social Security, pensions and investment income, RMDs can lift some retirees into a higher bracket than they planned for.
- The surviving spouse. Starting the year after the death, the survivor generally files as single. A survivor with a dependent child may qualify as a qualifying surviving spouse for two more years. Single filers face lower bracket and IRMAA thresholds, while RMDs from the inherited accounts may continue.
What planning choices may exist before RMDs start?
Several levers may be worth modeling, each with trade-offs.
- Roth conversions in lower-income years. Converting pre-tax dollars to Roth can shrink future RMDs, but the conversion itself is taxable income now.
- Withdrawals before the required start. Drawing from pre-tax accounts earlier can smooth income over more years and may reduce the account that later generates RMDs.
- Qualified charitable distributions (QCDs). If you are 70½ or older and give to charity, a direct transfer from an IRA can count toward your RMD without being added to taxable income. Rules and limits apply.
- Account consolidation. Fewer accounts can simplify tracking, but check how each account type calculates and satisfies RMDs before combining anything.
None of these is right for everyone. The right fit depends on your brackets, other income, health, charitable intent and what you want to leave to heirs.
Questions to ask yourself or your advisor
- What will my first RMD be, and how does it compare with my spending needs?
- Does my birth year put me at 73 or 75?
- How much of my savings is pre-tax, and what could my taxable income look like at 75 or 80?
- Would a Roth conversion, earlier withdrawals or QCDs help in my situation?
- Who tracks my RMDs across multiple accounts and custodians?
FAQ
At what age do I have to take RMDs?
Generally 73 if you were born from 1951 to 1959, and 75 if you were born in 1960 or later.
Do I have to take RMDs from a Roth IRA?
Not while you are alive. Roth IRA owners and designated Roth account owners have no lifetime RMDs, according to the IRS. Beneficiaries who inherit those accounts generally do have distribution requirements.
What is the penalty for missing an RMD?
The IRS describes a 25% excise tax on the amount not withdrawn as required. It may fall to 10% if you correct the shortfall within the IRS correction window, generally about two years. Report it on Form 5329.
Next step
If you are within a few years of RMDs, or already taking them, a conversation about how they fit with your taxes, Medicare costs and giving can help. Schedule a call with Brian Skinner, CFP®, CRPC®, at his Milford office.
Sources
[1] Federal Register, July 19, 2024, Required Minimum Distributions proposed regulations (applicable age for those born in 1959). https://www.govinfo.gov/content/pkg/FR-2024-07-19/pdf/2024-14543.pdf (read Nov 10, 2026)
[2] IRS, Retirement topics: Required minimum distributions. https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-required-minimum-distributions-rmds (read Nov 10, 2026)
[3] IRS, Retirement plan and IRA required minimum distributions FAQs. https://www.irs.gov/retirement-plans/retirement-plan-and-ira-required-minimum-distributions-faqs (read Nov 10, 2026)
[4] IRS Publication 590-B, Uniform Lifetime Table (Table III). https://www.irs.gov/publications/p590b
[5] IRS Publication 915 (2025). https://www.irs.gov/publications/p915
[6] Social Security Administration, Medicare premiums (IRMAA). https://www.ssa.gov/benefits/medicare/medicare-premiums.html (read Nov 10, 2026)
Important information
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. All examples are hypothetical and for illustrative purposes only.
Traditional IRA account owners have considerations to make before performing a Roth IRA conversion. These primarily include income tax consequences on the converted amount in the year of conversion, withdrawal limitations from a Roth IRA, and income limitations for future contributions to a Roth IRA. In addition, if you are required to take a required minimum distribution (RMD) in the year you convert, you must do so before converting to a Roth IRA.
Securities and advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC.
*CRPC conferred by College for Financial Planning.