When do Required Minimum Distributions start, and how are they calculated?

Q: When do Required Minimum Distributions start, and how are they calculated?

For anyone born in 1960 or later, RMDs start at age 75 under SECURE 2.0. The first-year RMD is roughly 4% of your prior-year-end IRA balance and grows each year as the IRS divisor shrinks. By age 90, the RMD is about 8% of the balance — meaning a $1M IRA throws off ~$80,000 of forced taxable income.

Key facts

RMD start age: 73 for those born 1951–1959, 75 for anyone born 1960 or later (SECURE 2.0, December 2022).
The penalty for missing an RMD is 25% of the shortfall, reduced to 10% if corrected within two years.
Year-1 RMD divisor at age 75 is 24.6 (Uniform Lifetime Table), so the RMD is balance ÷ 24.6 ≈ 4.07%.
RMDs use the prior December 31 balance — so 2026 RMDs are based on 12/31/2025 account values.
You have until April 1 of the year following the year you turn 75 for your first RMD, but doing so means two RMDs in one year.
Roth IRAs no longer require RMDs during the owner's lifetime as of 2024 (SECURE 2.0). Roth 401(k)s also dropped lifetime RMDs.
Inherited IRAs follow a 10-year drawdown rule for non-spouse heirs (SECURE Act 2019), with annual RMDs required during years 1–9 if the original owner had already started RMDs.
Qualified Charitable Distributions (QCDs) up to $108,000 in 2026 can satisfy your RMD without triggering taxable income.

Common follow-up questions

What happens if I miss my RMD?

The IRS imposes a 25% excise tax on the amount that should have been withdrawn. If you correct the error within two years and file Form 5329, the penalty drops to 10%. Most missed RMDs happen in the year someone turns 75 and forgets the new requirement — file the missed RMD as soon as possible.

Can I delay my first RMD?

You can delay the first RMD only — until April 1 of the year after you turn 75. Doing so means taking two RMDs in the same calendar year, which usually pushes you into a higher bracket and can trigger IRMAA. Most planners recommend taking the first RMD in the year you turn 75.

How do RMDs affect Medicare premiums?

RMDs count as ordinary income, which raises your MAGI. If MAGI crosses an IRMAA threshold (starting at $106,000 single or $212,000 MFJ in 2026), your Medicare Part B and Part D premiums increase — sometimes by $2,000+ per year. The Medicare lookback uses your MAGI from two years prior, so a 2026 RMD spike affects 2028 premiums.

Can I avoid RMDs with a Roth conversion?

Yes — Roth IRAs and Roth 401(k)s have no lifetime RMDs. Converting traditional balances to Roth before RMDs start can eliminate the forced-distribution problem entirely. The trade-off is paying conversion taxes upfront. The conversion years between retirement and age 75 are usually the lowest-tax window of your life.

Do I have to take RMDs from every IRA?

You calculate the RMD for each IRA separately, but you can satisfy the total from any single IRA (or combination). 401(k)s are different — each 401(k) RMD must come from that specific 401(k). This makes IRA aggregation a simple flexibility advantage.

When this doesn't apply

These start ages assume the 2022 SECURE 2.0 law remains in effect. Inherited IRAs, Roth IRAs, and 401(k)s where you're still working at the sponsoring employer follow different rules. Your specific RMD amount depends on your account balances on the prior December 31.

The IRS Has a Withdrawal Schedule for Your Money

Key facts

Common follow-up questions

When this doesn't apply

Sources

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