What Is a Required Minimum Distribution?
A Required Minimum Distribution (RMD) is the minimum amount the IRS requires you to withdraw each year from tax-deferred retirement accounts once you reach a certain age. These accounts include traditional IRAs, 401(k)s, 403(b)s, 457(b) plans, SEP IRAs, and SIMPLE IRAs. The purpose is to ensure that money sheltered from taxes during your working years is eventually taxed as retirement income.
Use our free RMD calculator to determine your exact required distribution based on the 2026 IRS Uniform Lifetime Table and SECURE Act 2.0 rules.
SECURE Act 2.0: When Do RMDs Begin?
The SECURE Act 2.0, signed into law in December 2022, significantly changed when RMDs must begin. The current rules depend on your birth year:
| Birth Year | RMD Starting Age | First RMD Due By |
|---|---|---|
| 1950 or earlier | 72 | Already required |
| 1951 – 1959 | 73 | April 1 of year after turning 73 |
| 1960 or later | 75 | April 1 of year after turning 75 |
For example, if you were born in 1953 and turned 73 in 2026, your first RMD is due by April 1, 2027. However, delaying your first RMD into the following year means you'll need to take two RMDs in that year — your delayed first-year RMD plus the current-year RMD — which could push you into a higher tax bracket.
How to Calculate Your RMD
The RMD formula is straightforward:
RMD = Prior Year-End Account Balance ÷ Distribution Period
Step 1: Determine Your Account Balance
Use the fair market value of your retirement account(s) as of December 31 of the prior year. For 2026 RMDs, use your December 31, 2025 balance. If you have multiple traditional IRAs, calculate the RMD for each separately (though you can take the total from any combination of IRAs).
Step 2: Find Your Distribution Period
Look up your age in the IRS Uniform Lifetime Table (Table III). Key values for 2026:
| Your Age | Distribution Period | Withdrawal Rate |
|---|---|---|
| 73 | 26.5 | 3.77% |
| 74 | 25.5 | 3.92% |
| 75 | 24.6 | 4.07% |
| 78 | 22.0 | 4.55% |
| 80 | 20.2 | 4.95% |
| 85 | 16.0 | 6.25% |
| 90 | 12.2 | 8.20% |
| 95 | 8.9 | 11.24% |
| 100 | 6.4 | 15.63% |
If your spouse is your sole beneficiary and is more than 10 years younger, you can use the Joint Life and Last Survivor Table (Table II), which provides a larger distribution period and a smaller required withdrawal.
Step 3: Divide
Divide your prior year-end balance by the distribution period. For example, a 75-year-old with a $500,000 balance: $500,000 ÷ 24.6 = $20,325 RMD.
RMD Calculation Examples
Example 1: Standard RMD at Age 75
Robert has a $500,000 traditional IRA balance as of December 31, 2025. He turns 75 in 2026.
- Distribution period at age 75: 24.6
- RMD: $500,000 ÷ 24.6 = $20,325
- At a 22% tax rate: $4,472 in estimated taxes
- After-tax income: $15,853
Example 2: Large Balance at Age 80
Patricia has a $1,000,000 combined across her 401(k) and rollover IRA. She is 80 years old.
- Distribution period at age 80: 20.2
- RMD: $1,000,000 ÷ 20.2 = $49,505
- At a 24% tax rate: $11,881 in estimated taxes
- This RMD, combined with Social Security, could trigger higher Medicare IRMAA premiums
Example 3: Younger Spouse Beneficiary
David (age 80) has a $750,000 IRA. His sole beneficiary is his wife Sarah, age 65 (15 years younger). Because the age gap exceeds 10 years, he qualifies for the Joint Life Table:
- Standard distribution period at 80: 20.2 → RMD of $37,129
- Joint Life distribution period: ~23.2 → RMD of $32,328
- Savings: $4,801 less in required withdrawals
Tax Strategies for Managing RMDs
1. Roth Conversions Before RMDs Begin
If you retire before your RMD age, the years between retirement and 73 (or 75) are often your lowest-income years. Converting traditional IRA money to a Roth IRA during this window means paying taxes at a potentially lower rate, reducing future RMDs, and creating tax-free income for later years.
2. Qualified Charitable Distributions (QCDs)
If you're age 70½ or older and charitably inclined, directing up to $105,000 per year from your IRA directly to charity satisfies your RMD without increasing your taxable income. This is often more tax-efficient than taking the RMD and then donating, because QCDs reduce your adjusted gross income (AGI), which can lower Medicare premiums and the taxation of Social Security benefits.
3. Tax Bracket Management
Consider withdrawing slightly more than your RMD in years when your income is lower, to smooth out your tax burden over time. This "bracket filling" strategy can prevent large RMDs from pushing you into higher brackets as your account balance grows with market gains. Use our tax calculator to model different scenarios.
4. Timing Your First RMD
You can delay your first RMD until April 1 of the following year, but this means two RMDs in one calendar year. For someone with a $500,000 balance at age 73, this could mean $38,000+ in RMDs in a single year. In most cases, taking your first RMD in the year you turn 73 is the better tax move.
5. Account Consolidation
Simplify your RMD management by consolidating multiple IRAs and old 401(k)s into a single rollover IRA. This makes tracking easier and allows you to take one combined RMD rather than calculating separately for each account.
Common RMD Mistakes to Avoid
- Missing the deadline. Mark December 31 on your calendar (or April 1 for your first RMD year). The 25% penalty is steep.
- Using the wrong year-end balance. Always use the December 31 balance of the prior year, not the current year.
- Forgetting about old 401(k)s. Each 401(k) requires its own separate RMD — you can't satisfy it from an IRA.
- Ignoring inherited accounts. Inherited IRAs have their own RMD schedules. Non-spouse beneficiaries generally must empty the account within 10 years under the SECURE Act.
- Not planning for the tax hit. RMDs are taxed as ordinary income. A $50,000 RMD at a 24% rate costs $12,000 in federal taxes alone. Plan your retirement withdrawals accordingly.
How RMDs Change Over Time
As you age, the distribution period shrinks and the withdrawal percentage grows. A $500,000 account with 5% annual growth would see RMDs increase from $20,325 at age 75 to approximately $40,000+ by age 85, even as the account balance declines. This accelerating withdrawal schedule is why proactive tax planning in your 60s and early 70s — before RMDs begin — is so valuable.
Use our RMD calculator to project your distributions over the next 5-20 years and plan your retirement income strategy accordingly. Pair it with the Social Security calculator and 401(k) calculator for a complete retirement income picture.
The Bottom Line
Required Minimum Distributions are a fact of life for anyone with traditional retirement accounts. The key is treating them not as an inconvenience but as a planning opportunity. By understanding the rules, calculating your RMDs accurately, and employing strategies like Roth conversions, QCDs, and bracket management, you can minimize the tax impact and make the most of your retirement savings.