Required Minimum Distributions aren’t optional, and the penalty for missing one is steep enough that “I forgot” is an expensive mistake. Here’s how the 2026 rules actually work.
The Age-73 Start Date
Under SECURE 2.0, RMDs from Traditional IRAs and 401(k)s must begin at age 73. You can delay your very first RMD until April 1 of the year after you turn 73, but every RMD after that must come out by December 31 of that year — delaying the first one just means you’ll take two distributions in one calendar year, which can push you into a higher tax bracket than spreading them out would have. The start age moves to 75 beginning in 2033, but that change doesn’t help anyone turning 73 before then.
How the Calculation Actually Works
Your RMD equals your account balance on December 31 of the prior year, divided by an IRS Uniform Lifetime Table factor tied to your age. At age 73, that divisor is 26.5, which works out to roughly a 3.77% withdrawal of your balance in the first year — and the required percentage climbs every year after as the divisor shrinks. This is a mechanical calculation, not a suggestion; the IRS doesn’t care whether you need the money that year.
The Real Penalty for Missing One
Failing to take your full RMD triggers a 25% excise tax on the amount you should have withdrawn but didn’t. That penalty drops to 10% if you correct the shortfall within two years — still a meaningful cost for a paperwork mistake, and one reason to set up automatic RMD withdrawals with your custodian rather than relying on remembering each December.
Why RMDs Can Undo a Roth-Heavy Strategy Assumption
If your Traditional vs. Roth decision assumed you’d have low taxable income in retirement, RMDs are the mechanism most likely to prove that assumption wrong. A large Traditional balance forces taxable withdrawals regardless of actual spending needs, which can push you into a higher bracket, increase how much of your Social Security is taxable, and trigger higher Medicare premiums through IRMAA. Roth accounts have no RMDs during the original owner’s lifetime, which is the real (not just tax-rate) advantage Roth carries into later retirement.
Inherited Accounts Follow Different Rules
If you’ve inherited a retirement account rather than owning one you built yourself, RMD rules differ substantially — most non-spouse beneficiaries now fall under a 10-year full-distribution window rather than the lifetime-stretch rules that used to apply. See our full breakdown in the Inherited IRA 10-Year Rule guide.
The Bottom Line
Know your first RMD year in advance, set up automatic distributions if your custodian offers them, and model what the mandatory withdrawal does to your tax bracket before you’re forced into it — the 25% penalty for missing it entirely is far worse than any bracket hit from taking it on time.
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