Required minimum distributions force retirement savers to start withdrawing money from tax-deferred accounts once they reach a certain age. The rules changed recently, and knowing whether you must take an RMD in 2026 depends on your birth year and account type.

Who Must Take RMDs in 2026

You must take an RMD in 2026 if you hold tax-deferred retirement accounts and meet the age threshold. According to the Internal Revenue Service, RMDs apply to Traditional IRAs, SEP IRAs, SIMPLE IRAs, 401(k) plans, 403(b) plans, 457(b) plans, and other defined contribution plans (Internal Revenue Service, 2026).

The SECURE 2.0 Act raised the RMD starting age. If you were born in 1951 through 1959, your RMD age is 73. If you were born in 1960 or later, you do not start RMDs until age 75. This means in 2026, anyone turning 73 who was born in 1953 must begin taking RMDs.

Roth IRAs are exempt from RMDs during the account owner’s lifetime. Roth 401(k) accounts were previously subject to RMDs, but SECURE 2.0 eliminated this requirement starting in 2024. Inherited retirement accounts follow different rules and typically require distributions regardless of the beneficiary’s age.

When You Must Take Your 2026 RMD

The deadline for your RMD depends on whether it is your first distribution or a subsequent one. If 2026 is your first RMD year (you turn 73 in 2026), you have until April 1, 2027 to take that initial distribution. However, delaying your first RMD means you will need to take two distributions in 2027: the delayed 2026 RMD by April 1, and your 2027 RMD by December 31, 2027. This bunching can push you into a higher tax bracket.

For anyone who has already started RMDs in prior years, the 2026 distribution must be withdrawn by December 31, 2026. There are no extensions for this deadline. The distribution counts as ordinary income in the year you receive it, so timing matters for tax planning purposes.

One important exception applies to 401(k) and similar workplace plans: if you are still working for the employer sponsoring your 401(k) and you do not own 5 percent or more of the company, you can delay RMDs from that specific plan until you retire. This still-working exception does not apply to IRAs or to 401(k) plans from former employers.

How RMD Amounts Are Calculated

Your RMD amount is calculated by dividing your account balance as of December 31 of the prior year by a life expectancy factor published by the IRS. The IRS updated these tables in 2022, generally reducing required distribution amounts compared to the old tables. Each account has its own RMD calculation, though you can aggregate RMDs from multiple Traditional IRAs and take the total from one or more of them. The same aggregation rule applies to 403(b) accounts, but 401(k) RMDs must be taken separately from each plan.

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Most retirement account custodians calculate your RMD for you and send a notice early in the year. You remain responsible for ensuring the correct amount is withdrawn, so verify the calculation if your account balance fluctuated significantly or if you have multiple accounts.

Penalties for Missing an RMD

Missing an RMD triggers an excise tax on the amount you failed to withdraw. The penalty was historically 50 percent of the shortfall, but SECURE 2.0 reduced it to 25 percent starting in 2023. If you catch the mistake and correct it quickly (within a correction window defined by the IRS), the penalty drops further to 10 percent.

Despite the reduced penalty, missing an RMD still creates a significant tax burden and requires filing IRS Form 5329 to report the shortfall. If you discover a missed RMD, take the distribution immediately and consult a tax professional about whether you qualify for penalty relief.

Planning Around RMDs

RMDs are a tax event, not an optional withdrawal. You cannot roll an RMD back into a retirement account, though you can reinvest the after-tax proceeds in a taxable brokerage account. Some account holders use RMDs for living expenses, while others employ strategies like qualified charitable distributions (QCDs) to satisfy the RMD requirement without increasing taxable income. A QCD allows individuals 70.5 or older to transfer up to $105,000 (as of 2024, indexed for inflation) directly from an IRA to a qualified charity, counting toward the RMD but excluded from taxable income.

As covered in foundational retirement planning texts such as Principles of Finance, understanding distribution rules is a core component of managing tax-deferred accounts effectively. In 2026, anyone born in 1953 or earlier should confirm their RMD obligations well before year-end to avoid penalties and manage the tax impact.

Disclaimer: This article provides general educational information about required minimum distributions and is not personalized financial or tax advice. RMD rules depend on individual circumstances, account types, and current law. Consult a qualified tax advisor or financial planner for guidance specific to your situation.