If you are turning 73 in 2026 or you inherited a retirement account, the IRS wants its cut. Learning how to calculate your RMD — the required minimum distribution you must pull from tax-deferred accounts — is mostly one division problem, but the deadlines and penalties are where people get burned. Here is the whole process, in plain numbers.
What changed in 2026
- The starting age is still 73. Under Secure 2.0, RMDs begin the year you turn 73. It climbs to 75 in 2033, but for anyone reaching 73 in 2026, this is your first RMD year.
- Roth 401(k)s no longer require RMDs. Since 2024, Roth balances inside employer plans are treated like Roth IRAs — no lifetime RMD for the owner.
- The missed-RMD penalty is lower. The old 50% excise tax dropped to 25%, and to 10% if you fix the shortfall within the correction window.
- QCD limits are inflation-indexed. The qualified charitable distribution cap now adjusts each year (roughly $108,000 for 2026 — verify at irs.gov).
The formula in one line
Your RMD is: prior-year-end balance divided by a life-expectancy factor.
- Balance: the fair market value of the account on December 31 of the previous year. For your 2026 RMD, that is the December 31, 2025 balance.
- Factor: a number from an IRS table based on your age. Most people use the Uniform Lifetime Table.
That is the entire calculation. The rest is knowing which table, which accounts, and when.
A worked example
Say you turn 73 in 2026 with $500,000 in a traditional IRA on December 31, 2025. The Uniform Lifetime Table factor at 73 is roughly 26.5 (confirm the current figure at irs.gov).
| Step |
Value |
| Prior-year-end balance |
$500,000 |
| Age-73 factor |
~26.5 |
| RMD (balance / factor) |
~$18,868 |
| Effective withdrawal rate |
~3.8% |
Each year the factor shrinks, so the percentage you must withdraw slowly rises. You can always take more than the RMD; you just cannot take less.
Which accounts actually have RMDs
| Account type |
RMD required? |
Notes |
| Traditional IRA / SEP / SIMPLE |
Yes |
Aggregate all IRAs, take total from any one |
| Traditional 401(k) / 403(b) |
Yes |
Calculate and withdraw from each plan separately |
| Roth IRA |
No (owner) |
Heirs may owe RMDs |
| Roth 401(k) |
No (since 2024) |
Now matches Roth IRA rules |
| Inherited IRA |
Usually yes |
Uses the Single Life table; 10-year rule may apply |
Two rules trip people up: you can pool IRA RMDs and pull the whole amount from one IRA, but you cannot pool 401(k)s — each plan pays its own.
Which table to use
- Uniform Lifetime Table — the default for account owners.
- Joint Life and Last Survivor Table — if your spouse is the sole beneficiary and more than 10 years younger. It lowers your RMD.
- Single Life Table — for most inherited accounts.
Grab your factor from the correct table before dividing, or the number will be wrong. The tables live in IRS Publication 590-B.
Timing and the penalty
- First-year grace period: your very first RMD can wait until April 1 of the following year. So a 2026 RMD can be delayed to April 1, 2027 — but then you take two RMDs in one year, which can spike your tax bracket.
- Every year after: the deadline is December 31.
- Miss it: the penalty is 25% of the shortfall (10% if corrected promptly), plus the ordinary income tax you owed anyway.
What to skip
- Do not treat the RMD as the smart amount to withdraw — it is the legal minimum, not a spending plan.
- Do not double-count by taking a 401(k) RMD out of an IRA — the aggregation rule does not cross account types.
- Do not skip a Qualified Charitable Distribution if you already give — a QCD counts toward your RMD and stays off your taxable income, which beats donating after you have been taxed.
- Do not trust a generic online calculator blindly — verify the balance date, the table, and your birth year yourself.
FAQ
Do I still take an RMD the year I turn 73 if I am still working?
For a workplace 401(k) at your current employer, you may qualify for the "still working" exception if you do not own more than 5% of the company, and delay until retirement. IRAs get no such break.
What if I have several IRAs?
Calculate the RMD for each, add them up, and withdraw the total from any one account or any mix of them. Separate 401(k)s must each be satisfied on their own.
Are RMDs taxed?
Yes — traditional-account RMDs count as ordinary income in the year you take them. Roth accounts are the exception, since they generally have no owner RMD.
Can I reinvest my RMD?
You cannot roll it back into a tax-deferred account, but you can move it into a taxable brokerage or savings account and keep it invested.
Where to go next
Once the RMD is handled, the bigger question is what to do with the money. Read our take on AI investing strategies for 2026 to keep proceeds working, weigh guaranteed income in annuities explained for 2026, and compare the math in 15 vs 30 year mortgage in 2026 if debt is still on your plate.