Your First RMD in 2026: A Plain-English Guide

If you were born in 1953, the IRS is knocking this year. Required minimum distributions — mandatory annual withdrawals from traditional IRAs, 401(k)s, and similar accounts — begin at age 73 for anyone born between 1951 and 1959. That means 2026 is the first year those born in 1953 must take one, with a December 31 deadline or an April 1, 2027 extension for the very first draw. Miss it, and a penalty of up to 25% of the amount you should have taken applies. The rules changed meaningfully under SECURE 2.0, and a few of those changes work in your favor — if you know where to look.

Who Has to Take an RMD in 2026?

The starting age for RMDs depends entirely on when you were born. Under the SECURE 2.0 Act, individuals born between 1951 and 1959 must begin RMDs at age 73. Individuals born in 1960 or later will not face their first RMD until age 75, which means that group has more time — and more room for Roth conversion planning — before the mandatory withdrawals begin.

The accounts subject to RMDs include traditional IRAs, SEP IRAs, SIMPLE IRAs, and most employer-sponsored plans such as 401(k)s and 403(b)s. Roth IRAs are exempt from RMDs during the original owner's lifetime. And starting in 2024, Roth 401(k) plans joined that exemption — a meaningful change for anyone who had been rolling a Roth 401(k) to a Roth IRA solely to avoid RMDs.

How the Calculation Works

The math behind an RMD is straightforward. You divide your account balance as of December 31 of the prior year by a life-expectancy factor from the IRS Uniform Lifetime Table. The factor changes each year as you age. At 73, the divisor is 26.5; at 75, it drops to 24.6; at 80, it falls to 20.2. A larger account balance or a smaller divisor means a larger required withdrawal — and a larger ordinary-income tax bill to match.

If you have multiple traditional IRAs, you can add up all their balances, calculate the total RMD, and then take the full amount from whichever account or combination of accounts you prefer. For 401(k)s, each plan generally requires its own separate calculation and withdrawal.

The Double-RMD Trap in Year One

First-timers get one grace period: you can delay your initial RMD until April 1 of the following year. For someone turning 73 in 2026, that means the first RMD can legally be pushed to April 1, 2027. But that delay comes with a consequence most people don't anticipate. The second-year RMD is still due December 31, 2027 — meaning you take two full RMDs in 2027, both taxed as ordinary income in the same year. For many retirees, two RMDs in one calendar year can push taxable income into a higher bracket, raise Medicare premiums under IRMAA, and increase the portion of Social Security subject to tax. Whether delaying makes sense depends on your specific income picture for both years. This is a question worth working through with your advisor before April.

The Penalty — and What Changed

Missing an RMD used to carry a 50% excise tax on the amount you failed to withdraw. SECURE 2.0 reduced that penalty to 25% of the shortfall, and further to 10% if you catch and correct the error within the IRS's two-year correction window. The reduction is welcome, but a 25% penalty on a missed withdrawal is still a costly mistake. The deadline for most taxpayers is December 31, 2026 — not a date to let slide while you're busy with the holidays.

Using a QCD to Reduce the Tax Bite

A Qualified Charitable Distribution — a direct transfer from your IRA to a qualifying charity — satisfies your RMD without adding the distribution to your taxable income. For retirees who give to charity anyway, this is one of the cleanest tax-planning moves available. The QCD limit for 2026 is $111,000, adjusted for inflation under SECURE 2.0. That ceiling is high enough to cover most people's full RMD and then some. One condition: the transfer must go directly from the IRA to the charity — the money cannot pass through your hands first.

A Qualified Charitable Distribution covers your RMD requirement while keeping that income off your tax return entirely — one of the most efficient intersections of giving and retirement planning available under current law.

RMDs as Part of a Larger Plan

For many retirees, RMDs arrive larger than expected because decades of tax-deferred compounding have built up account balances quietly in the background. A $750,000 IRA at age 73 produces an RMD of roughly $28,300 — taxed as ordinary income regardless of whether you need the cash. That withdrawal can interact with your Social Security income, your Medicare Part B and D premiums, and the tax treatment of any other income you receive.

This is why RMD planning rarely stands on its own. Decisions about Roth conversions in prior years, QCDs, the timing of the first distribution, and coordinating withdrawals across multiple accounts all connect. At HomeBrook, we treat RMDs as one piece of a coordinated plan — not a year-end checkbox. If a client's RMDs are going to create a tax problem, the time to address it is before the distribution, not after.

Common Questions

What is the RMD starting age in 2026?

For most people in 2026, required minimum distributions begin at age 73. This applies to individuals born between 1951 and 1959 under the SECURE 2.0 Act. Individuals born in 1960 or later will begin RMDs at age 75, which under current law means their first mandatory withdrawal won't arrive until 2035 at the earliest.

Can I avoid paying income tax on my RMD?

You cannot avoid taking the distribution if you are subject to RMD rules, but a Qualified Charitable Distribution (QCD) allows you to direct up to $111,000 in 2026 directly from your IRA to a qualifying charity. That amount satisfies your RMD for the year without being included in your taxable income. This strategy works only for IRA accounts — not 401(k)s — and the transfer must go directly to the charity.

What happens if I miss my RMD deadline?

Missing an RMD triggers an excise tax of 25% on the amount you were required to withdraw but did not. Under SECURE 2.0, that penalty can be reduced to 10% if you correct the shortfall within the IRS's two-year correction window. The standard deadline for most taxpayers is December 31 of each year. First-year filers may delay until April 1 of the following year, though doing so means two RMDs land in that second calendar year.

Important Disclosures: This content for general educational purposes only. Securities are offered through LPL Financial, Member FINRA/SIPC. Advisory services are offered through Convergence Financial, an SEC-registered investment adviser; registration does not imply a certain level of skill or training. HomeBrook Wealth and Convergence Financial are separate entities from LPL Financial. This is not individualized investment, tax, or legal advice, or an offer to buy or sell any security, and may not suit every investor.

Information is as of the publication date and subject to change without notice. Opinions and forecasts, including third-party ones, are not guarantees. Data is from sources believed reliable but not guaranteed. Indexes are unmanaged, cannot be invested in directly, and do not represent client results. Examples are hypothetical and for illustration only. Investing involves risk, including loss of principal, and past performance does not guarantee future results. Bonds lose value as rates rise; small caps, commodities, and concentrated sectors can be more volatile. Convergence Financial does not provide tax or legal advice. Third-party links are provided for convenience only, and we are not responsible for their content.

Sources

• IRS life-expectancy divisors used to calculate annual RMD amounts from the Uniform Lifetime Table

• The QCD limit for 2026 is $111,000, indexed for inflation under SECURE 2.0

• First RMD may be delayed to April 1 of the following year, but delaying creates two RMDs in one calendar year

• SECURE 2.0 exempted Roth 401(k) plans from RMDs during the original account holder's lifetime

• RMD start ages by birth cohort under final IRS regulations: 73 for 1951–1958, 75 for 1960 or later