What is an RMD?
Key takeaways
- The RMD age is 73 if you were born from 1951 through 1958 and 75 if you were born in 1960 or later, but for a 1959 birth year the tax code reads as both ages and the IRS has not settled which one applies.1
- Your RMD each year is the prior December 31 balance divided by the IRS factor for your age, so at 73 you'll withdraw about 3.77% of each traditional IRA or pre-tax 401(k) balance.
- Roth IRAs and Roth 401(k)s have no RMDs during your lifetime, so the rules fall on traditional, SEP, and SIMPLE IRAs and pre-tax workplace plans, and the Tweed RMD Calculator runs your number from your balance and birth year.
In this article
- What is an RMD?
- Which accounts have RMDs?
- When do RMDs start?
- Is the RMD age changing to 75?
- How to calculate your RMD in 3 steps
- 4 differences between RMD rules for IRAs and 401(k)s
- 2026 RMD rules and figures
- What happens if you miss an RMD?
- How to fix a missed RMD in 3 steps
- Can a QCD satisfy an RMD?
- Estimate your RMD with the Tweed RMD Calculator
- Frequently asked questions about RMDs
Key takeaways
- The RMD age is 73 if you were born from 1951 through 1958 and 75 if you were born in 1960 or later, but for a 1959 birth year the tax code reads as both ages and the IRS has not settled which one applies.1
- Your RMD each year is the prior December 31 balance divided by the IRS factor for your age, so at 73 you'll withdraw about 3.77% of each traditional IRA or pre-tax 401(k) balance.
- Roth IRAs and Roth 401(k)s have no RMDs during your lifetime, so the rules fall on traditional, SEP, and SIMPLE IRAs and pre-tax workplace plans, and the Tweed RMD Calculator runs your number from your balance and birth year.
An RMD, or required minimum distribution, is the smallest amount the IRS makes you withdraw each year from a tax-deferred retirement account, such as a traditional IRA or 401(k), once you reach your RMD age: 73 for most people taking them now and 75 for anyone born in 1960 or later. Each withdrawal is taxed as ordinary income, and a missed one can cost 25% of the shortfall. This guide explains how RMDs work, which accounts have them, when they start, what happens if you miss one, how a QCD counts toward one, and how to calculate yours.
What is an RMD?
An RMD is the minimum amount you must withdraw each year from a traditional IRA, SEP IRA, SIMPLE IRA, or workplace retirement plan once you reach your RMD age.2 You can always withdraw more, but extra withdrawals this year don't count toward next year's RMD, and an RMD can't be rolled over into another tax-deferred account.
Your IRA custodian or plan administrator may calculate the amount for you, but you're responsible for taking the right amount on time.
How an RMD works
An RMD works on a yearly cycle: you take last December 31's balance, divide it by a life expectancy factor from the IRS Uniform Lifetime Table, and withdraw at least that amount by December 31.3 If your spouse is your sole beneficiary and more than 10 years younger, you use the Joint Life and Last Survivor table (Table II) instead, which gives a smaller RMD. The factor shrinks every year, so the share of the balance you have to withdraw rises with age.
Why the IRS requires RMDs
The IRS requires RMDs because traditional IRA and 401(k) money went in untaxed and grew untaxed, and RMDs ensure that income is taxed during your lifetime. Each RMD counts as ordinary income in the year you take it, except any part that is after-tax basis.
Which accounts have RMDs?
RMDs apply to traditional IRAs, SEP IRAs, SIMPLE IRAs, and workplace plans such as 401(k), 403(b), and 457(b) plans, and they don't apply to Roth IRAs during the owner's lifetime.
Accounts that require RMDs
The accounts that require RMDs during your lifetime are:
- Traditional IRAs
- SEP IRAs, SARSEPs, and SIMPLE IRAs
- 401(k), 403(b), 457(b), and profit-sharing plans
- Other defined contribution plans
A defined benefit pension meets its RMDs through the annuity payments it already makes, so if you have a pension, the plan handles it for you.
Accounts with no RMDs during your lifetime
Roth IRAs and designated Roth accounts in a 401(k) or 403(b) have no RMDs during your lifetime. Beneficiaries who inherit a Roth account do have to take them, and inherited IRA rules are a separate topic this page doesn't cover.
If you're still deciding between the two account types before retirement, Roth vs traditional IRA compares when each one comes out ahead.
When do RMDs start?
RMDs start in the year you reach your RMD age, which depends on your birth year, and your first one can wait until April 1 of the following year.
RMD start age by birth year
Your RMD start age depends on the year you were born.
| Born | RMD age | First RMD year |
|---|---|---|
| July 1, 1949, to December 31, 1950 | 72 | The year you turned 72 |
| 1951 to 1958 | 73 | 2024 to 2031 |
| 1959 | Unresolved, see below | Not yet settled |
| 1960 or later | 75 | 2035 or later |
If you were born in 1953, 2026 is your first RMD year.
Your first RMD deadline: April 1 or December 31
Your first RMD is due by April 1 of the year after you reach your RMD age, and every RMD after that is due by December 31 of its own year.2 Waiting until April 1 puts two RMDs in the same tax year, which can push part of your income into a higher tax bracket. For someone born in 1953 with a $400,000 IRA, the two choices compare like this.
| RMD | Take the first RMD by December 31, 2026 | Delay the first RMD to April 1, 2027 |
|---|---|---|
| 2026 RMD ($400,000 ÷ 26.5) | $15,094.34, taxed in 2026 | $15,094.34, taxed in 2027 |
| 2027 RMD (December 31, 2026, balance of $400,000 ÷ 25.5) | $15,686.27, taxed in 2027 | $15,686.27, taxed in 2027 |
| RMD income taxed in 2027 | $15,686.27 | $30,780.61 |
If you'd rather keep the two withdrawals in separate tax years, take the first one by December 31 of the year you reach your RMD age. The Tweed RMD Calculator shows what each choice does to your first-year withdrawals.
If you were born in 1959
If you were born in 1959, your RMD age is not settled yet, because the tax code gives your birth year both age 73 and age 75. Clause (I) of IRC §401(a)(9)(C)(v) applies to anyone who turns 73 before 2033, and clause (II) applies to anyone who turns 74 in 2033 or later, so a 1959 birth year meets both.
The regulation slot for your birth year, 26 CFR §1.401(a)(9)-2(b)(2)(v), is still marked reserved, and a proposed rule that would set age 73 is not final. Nobody born in 1959 turns 73 until 2032, so watch for final IRS guidance and confirm your start year with your custodian before then.
If you're still working
If you're still working, you can delay RMDs from your current employer's 401(k) or similar plan until the year you retire, unless you're a 5% owner of the company.2 The delay doesn't apply to IRAs, including SEP and SIMPLE IRAs, and it covers only the plan of the employer you still work for. Your plan also has to allow the delay, and some plan documents require distributions at your RMD age even if you're still employed.
Is the RMD age changing to 75?
Yes, the RMD age is changing to 75, but only for people born in 1960 or later.1 If you were born from 1951 through1958, your RMD age stays 73, and if you were born in 1959, your age isn't settled yet (see when RMDs start above).
Nobody takes a first RMD at 75 until 2035, the year people born in 1960 turn 75, and the first deadline is April 1, 2036. The tax code switches to age 75 in 2033, but a person born in 1960 turns only 73 that year and has no RMD due. Some people use the years before RMDs start for Roth conversions, and the Tweed Roth Conversion Calculator shows the tax cost of converting in those years.
How to calculate your RMD in 3 steps
You can calculate your RMD in 3 steps: find last year's closing balance, look up your factor, and divide. Repeat them for each account, then combine the results as the rules above allow.
Step 1: Find your December 31 balance
Find each account's balance on December 31 of last year, from your year-end statement. For a 2026 RMD, that is the December 31, 2025, balance.
Step 2: Look up your factor in the Uniform Lifetime Table
Look up the factor for the age you reach this year in the IRS Uniform Lifetime Table. Ages 73 to 80 are below, and the full RMD table lists every age.
| Age | Factor |
|---|---|
| 73 | 26.5 |
| 74 | 25.5 |
| 75 | 24.6 |
| 76 | 23.7 |
| 77 | 22.9 |
| 78 | 22.0 |
| 79 | 21.1 |
| 80 | 20.2 |
Step 3: Divide the balance by the factor
Divide the balance by the factor, and the result is the least you'll have to withdraw this year. A $250,000 IRA at age 75 divided by 24.6 gives an RMD of $10,162.60.
The share you have to take out rises every year, because the factor shrinks as you age.
- Age 73
- 3.77%
- Age 75
- 4.07%
- Age 80
- 4.95%
- Age 85
- 6.25%
- Age 90
- 8.20%
- Age 95
- 11.24%
- Age 100
- 15.63%
Source: IRS Publication 590-B, Uniform Lifetime Table. The share is 1 divided by the factor.
4 differences between RMD rules for IRAs and 401(k)s
The 4 differences between RMD rules for IRAs and 401(k)s are when RMDs start if you're still working, who sets the start date, whether you can combine withdrawals, and whether you can give an RMD to charity.
| Rule | Traditional, SEP, and SIMPLE IRAs | 401(k), 403(b), and 457(b) plans |
|---|---|---|
| When RMDs start if you're still working | At your RMD age, working or not | The year you retire, if the plan allows it and you aren't a 5% owner of the employer |
| Who sets the start date | The tax code | The tax code, but the plan document can require distributions at your RMD age even if you're still working |
| Combining withdrawals | Calculate each IRA separately, then take the total from any one or more IRAs | Take each 401(k) or 457(b) RMD from that plan; 403(b) contracts can be combined with each other |
| Charitable giving | A qualified charitable distribution from age 70½ counts toward the RMD, except from a SEP or SIMPLE IRA still receiving employer contributions | Not available from a 401(k) or 403(b) |
If you have three IRAs and one old 401(k), you'll make at least two withdrawals: one covering all three IRAs and one from the 401(k).
2026 RMD rules and figures
The 2026 RMD rules and figures below cover start ages, deadlines, the missed-RMD tax, and the two dollar limits the IRS sets each year.
| Rule | 2026 figure |
|---|---|
| RMD age, born 1951 to 1958 | 73 |
| RMD age, born 1960 or later | 75 |
| First RMD deadline | April 1 of the year after you reach RMD age |
| Every later RMD | December 31 |
| Missed RMD excise tax | 25% of the shortfall, 10% if corrected within the correction window |
| Qualified charitable distribution limit4 | $111,000 per person |
| Qualifying longevity annuity contract premium limit | $210,000 |
What happens if you miss an RMD?
If you miss an RMD or take too little, you owe a 25% excise tax on the amount you didn't withdraw, and it drops to 10% if you correct the shortfall within the correction window.5 The tax is charged on the shortfall, not on the account balance. Before SECURE 2.0, the rate was 50%.
| Rate | When it applies | Tax on a $10,000 missed RMD |
|---|---|---|
| 25% | The shortfall isn't corrected within the correction window | $2,500 |
| 10% | You withdraw the shortfall from the same plan and file a return showing the tax, both within the correction window | $1,000 |
Three dates can close the correction window, and the earliest one ends it: the date the IRS mails a notice of deficiency, the date the IRS assesses the tax, or the last day of the second tax year after the year the tax was imposed. Fix a shortfall as soon as you find it, because an IRS notice can close the window before the two years are up.
How to fix a missed RMD in 3 steps
You can fix a missed RMD in 3 steps: withdraw the shortfall, file Form 5329, and either request a waiver or pay the reduced tax.
Step 1: Withdraw the missed RMD
Withdraw the full shortfall from the same account the RMD should have come from. The reduced rate applies only when the corrective withdrawal comes from the same plan the tax relates to, so for a 401(k), that means the same 401(k).
Step 2: File Form 5329 for the year of the missed RMD
File Form 5329 for the year the RMD was missed, using that year's version of the form.2 If you haven't filed that year's return yet, include Form 5329 with it. If the return is already filed, the Form 5329 instructions explain whether to send the form by itself or with Form 1040-X.
Step 3: Request a waiver or pay the reduced tax
The IRS can waive the tax if the shortfall came from a reasonable error and you're taking reasonable steps to fix it. To ask, write "RC" and the amount you want waived in parentheses next to the shortfall line in Part IX of Form 5329, and attach a letter of explanation. If you don't ask for a waiver, report the tax at 10% when you've corrected the shortfall within the window, or at 25% if you haven't.
Can a QCD satisfy an RMD?
Yes, a qualified charitable distribution (QCD) counts toward your RMD for the year, and the amount you give stays out of your taxable income.3 A QCD is a distribution sent directly from your IRA trustee to an eligible charity. If the QCD is smaller than your RMD, you withdraw the rest as a normal taxable distribution.
For someone born in 1953 with a $400,000 IRA, the 2026 RMD is $15,094.34, and a $10,000 QCD leaves $5,094.34 to withdraw as taxable income. Send the QCD before you take the rest of your RMD, because money you've already withdrawn is taxable and a later QCD doesn't change that.
A QCD counts toward an RMD only from your RMD age. Between 70½ and your RMD age, a QCD is still excluded from income, but there's no RMD yet for it to count toward. Deductible IRA contributions you made at 70½ or older reduce the amount you can exclude.
| QCD rule | 2026 |
|---|---|
| Minimum age on the distribution date | 70½ |
| Annual limit per person4 | $111,000 |
| One-time gift to a charitable remainder trust or charitable gift annuity, within the annual limit | $55,000 |
| Eligible accounts | IRAs, but not a 401(k), a 403(b), or a SEP or SIMPLE IRA still receiving employer contributions |
Estimate your RMD with the Tweed RMD Calculator
The Tweed RMD Calculator takes your prior year-end balance, birth year, and account type and returns this year's RMD, the factor it used, and a multi-year projection. If your RMDs will push you into a higher tax bracket, the Tweed Roth Conversion Calculator prices converting in the years before they start. Both tools work from pre-tax balances, and the traditional IRA guide covers the account rules behind them.
Frequently asked questions about RMDs
How does the IRS know you made a QCD?
The IRS knows you made a QCD from your Form 1040. Your custodian reports the full IRA distribution on Form 1099-R, and you enter that total on line 4a, zero on line 4b if all of it was a QCD, and check box 2 on line 4c. Those are 2025 Form 1040 lines, so check the instructions for the year you file.
Can I reinvest my RMD?
Yes, you can reinvest your RMD once it's paid out, in a taxable brokerage account, a savings account, or a CD. The withdrawal is taxed as income for the year either way. You can put it in a Roth IRA only if you have taxable compensation for the year, such as wages, because an RMD doesn't count as compensation.
Can I take my RMD in stock instead of cash?
Yes, you can usually take your RMD in stock instead of cash if your custodian allows an in-kind distribution to a taxable account. The value of the shares on the distribution date counts toward your RMD and is taxed as income, like a cash withdrawal. Ask your custodian how it values the shares and reports them on Form 1099-R.
What is the 4% rule for RMD?
The 4% rule is a retirement spending guideline for how much of a portfolio to withdraw each year, not an IRS rule, and it doesn't replace your RMD. Your RMD starts at about 3.77% of the prior year-end balance at age 73 and passes 4% at age 75, where the factor is 24.6.
What are the disadvantages of a QCD?
The main disadvantages of a QCD are that you can't also deduct the gift as a charitable contribution, the money has to go straight from your IRA trustee to the charity, and it can't go to a donor-advised fund. The charity also has to be eligible for tax-deductible gifts, which rules out supporting organizations and most private foundations.
Sources
- https://www.law.cornell.edu/uscode/text/26/401
- https://www.irs.gov/retirement-plans/retirement-plan-and-ira-required-minimum-distributions-faqs
- https://www.irs.gov/publications/p590b
- https://www.irs.gov/pub/irs-drop/n-25-67.pdf
- https://www.law.cornell.edu/uscode/text/26/4974
This page describes federal RMD rules for IRA and workplace plan owners during their lifetime. Inherited accounts follow different rules. Figures are for 2026.
Tweed provides educational information, not financial advice. Nicolas Straut is a personal finance writer, not a financial advisor.
Personal finance writer, former Forbes contributor and This Week in Fintech writer. He isn't a financial advisor or a CPA.
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