Personal Finance & Estate › Retirement accounts & pensions › Retirement income planning (savings into paychecks)
Required minimum distributions (RMDs)
73; 75 if born 1960 or later· Tax rule
Law or rule (2026)Set by statute, regulation or the agency; numbers change yearly.
Yearly minimum withdrawals the IRS requires from pre-tax retirement accounts, starting at 73 (75 if born 1960 or later).
See it on the Personal Finance & Estate map →How it works
Each year's minimum is last December 31's balance divided by an IRS life-expectancy factor: 26.5 at 73 (about 3.8%), 20.2 at 80, 12.2 at 90. It covers traditional, SEP and SIMPLE IRAs and pre-tax 401(k)-type plans, not Roth IRAs or, since 2024, Roth 401(k)s. The first can wait until April 1 of the next year, but then two land in one tax year. Missing one costs 25% of the shortfall, cut to 10% if fixed within two years.
Why it matters for you
RMDs end tax deferral and set a floor on taxable income in your 70s and 80s; planning before 73 (conversions, QCDs) is a CPA conversation.
Rules, limits and sources (2026)
IRC Sec. 401(a)(9); IRS Publication 590-B and its Uniform Lifetime Table; final IRS regulations published July 2024.
Watch out for
SECURE 2.0's text muddled the start age for people born in 1959; IRS proposed rules (2024) read it as 73.
Inside this (2)
Connections (7)
▸Required minimum distributions (RMDs) set a mandatory withdrawal floor in Retirement income planning (savings into paychecks)Law or rule (2026)
How they connect
RMDs set a legal minimum on withdrawals from pre-tax accounts from 73 or 75, whether or not you need the cash. A retirement income plan has to schedule them, decide which accounts fund spending first, and decide what to do with any excess: reinvest it in a taxable account, give it via QCD, or spend it.
When it applies
Starts the year you turn 73 (75 if born 1960 or later); each year's amount is set by the prior December 31 balance and IRS tables.
The rule
IRC Sec. 401(a)(9) and IRS Publication 590-B set the rules; custodians flag each year's requirement on Form 5498.
Watch out for
Whether to draw down IRAs before RMD age or let them grow depends on brackets, heirs and longevity; planners disagree.
▸Inherited IRA 10-year rule is the heirs' version of Required minimum distributions (RMDs)Law or rule (2026)
How they connect
RMDs make the original owner withdraw yearly; the 10-year rule governs heirs after death. If the owner had already begun RMDs, heirs keep annual withdrawals going in years 1–9 and must empty the account by year 10. A surviving spouse can instead treat the IRA as their own.
When it applies
Applies to deaths after 2019; annual withdrawals by heirs have been enforced since 2025, after four years of IRS penalty waivers.
The rule
IRS final regulations under IRC Sec. 401(a)(9), published July 2024, confirmed the annual-withdrawal requirement.
Watch out for
Many heirs and some custodians missed the annual rule during the waiver years; how strictly the IRS will police it is unclear.
▸Required minimum distributions (RMDs) can push retirees into higher Federal tax brackets (10%–37%)Watch out
How they connect
RMDs rise each year as the IRS divisor shrinks, from about 3.8% of the balance at 73 to over 8% at 90. Stacked on Social Security, pensions and rental income, they can push retirees into the 24% or 32% bracket, make up to 85% of Social Security taxable, and trigger Medicare IRMAA surcharges.
When it applies
Hits hardest in the 70s and 80s, and after a spouse dies, when the survivor files single with narrower brackets but similar RMDs.
How sure?
IRS Uniform Lifetime Table divisors (26.5 at 73, 12.2 at 90); bracket tables and IRMAA thresholds published yearly.
Watch out for
How much to convert to Roth earlier depends on future tax law; to protect a surviving parent, model both spouses' scenarios with a CPA.
▸Required minimum distributions (RMDs) can trigger IRMAA (income surcharge on Parts B & D)Watch out
How they connect
RMDs are taxable income that grows each year with age, and Medicare uses that income to set IRMAA two years later. A large traditional IRA or 401(k) can force withdrawals above $109,000 single or $218,000 joint, adding Part B and D surcharges for both spouses even if nothing else changes.
When it applies
RMDs start at 73, or 75 if born in 1960 or later (SECURE 2.0, 2022); the premium hit lands two years after each withdrawal year.
How sure?
RMDs count in adjusted gross income (IRC Sec. 401(a)(9)); IRMAA uses modified AGI from IRS returns (Social Security Act Sec. 1839(i)).
Watch out for
Whether paying tax early through Roth conversions, which can trigger IRMAA themselves, beats facing RMD-driven surcharges later depends on future rates and lifespan.
▸SECURE Act (2019) & SECURE 2.0 (2022) raised the starting age of Required minimum distributions (RMDs)Law or rule (2026)
How they connect
SECURE raised the RMD starting age from 70½ to 72 in 2020; SECURE 2.0 raised it to 73 in 2023 and to 75 from 2033 for people born 1960 or later. It also cut the missed-RMD penalty from 50% to 25%, or 10% if corrected promptly.
When it applies
Signed December 2019 and December 2022; IRS final regulations followed in July 2024.
The rule
Statute text (SECURE Sec. 114; SECURE 2.0 Secs. 107 and 302) and IRS Publication 590-B.
Watch out for
Drafting left the age for people born in 1959 ambiguous; IRS proposed rules (2024) set it at 73 pending a legislative fix.
▸Roth 401(k) is exempt (since 2024) from Required minimum distributions (RMDs)Law or rule (2026)
How they connect
Before 2024, Roth 401(k) owners had to take RMDs even though the money came out tax-free, unlike Roth IRA owners; many rolled to a Roth IRA to escape them. SECURE 2.0 ended that, so Roth 401(k) money can stay invested for life. Heirs still face the 10-year rule.
When it applies
SECURE 2.0 Section 325, effective for 2024 and later years.
The rule
Statute text and IRS final RMD regulations (2024); IRS Publication 575 and plan notices reflect it.
Watch out for
Whether to keep Roth money in a 401(k) or move it to a Roth IRA now turns on fees, investments and creditor protection.
▸Qualified charitable distribution (QCD) from an IRA can satisfy Required minimum distributions (RMDs)Law or rule (2026)
How they connect
Once RMDs begin, QCDs made during the year count toward that year's required amount. So a charitable retiree can send some or all of an RMD straight to charity, meeting the IRS minimum without adding that amount to taxable income.
When it applies
Available from age 70½, before RMDs start at 73; the gift must leave the IRA by December 31.
The rule
IRC Sec. 408(d)(8) and IRS Publication 590-B; on Form 1040, 'QCD' is written next to the IRA distribution line.
Watch out for
Whether a QCD or a gift of appreciated stock to a donor-advised fund is better depends on your tax picture; ask your CPA.