RMD Rules at Age 73 in 2026: Required Minimum Distribution Guide

Quick Answer

Starting in the year you turn 73 (up from 72, per SECURE Act 2.0), you must withdraw a minimum amount from your traditional IRAs and 401(k)s each year. The IRS calculates this "Required Minimum Distribution" (RMD) by dividing your December 31 balance by an IRS life-expectancy table (age 73 → factor 25.5, meaning ~3.9% of your balance). Miss the deadline, and the IRS penalizes you 25% of the shortfall—up from 10% under old rules. If you're already taking more than your RMD, you're fine; if you're taking nothing, you need a withdrawal strategy immediately.

RMD Timeline Has Shifted

SECURE Act 2.0 pushed the RMD start age from 72 to 73 for people born after June 30, 1951. This is a gift—three extra years of tax-free compounding. Here's the timeline:

Example: You turn 73 in 2026 (born in 1953). Your first RMD is due by December 31, 2026, calculated on your December 31, 2025 balance.

RMD Applies to Multiple Account Types

The key: If you have $2M across three traditional IRAs and a 401(k), the RMD is calculated on the combined $2M balance.

Common Mistakes (Do This, Not That)

❌ Mistake 1: Taking your RMD from only one account
The IRS requires the total RMD to be withdrawn, but you can take it from one or all accounts. Many people take it from the wrong account and miss the deadline for the others.

✅ Fix: Calculate the combined RMD across all traditional accounts, then decide which accounts to withdraw from. Name the accounts in your plan: "Take $80K from IRA, $20K from 401(k)."

❌ Mistake 2: Forgetting your first RMD year
Your first RMD doesn't arrive automatically, and there's no friendly IRS notice. The burden is on you. Many people turn 73, get busy, and skip it.

✅ Fix: Set a calendar reminder for August of the year you turn 73: "Calculate first RMD." Set another for December 1: "Confirm first RMD is complete." Make it two reminders.

❌ Mistake 3: Confusing the Roth IRA RMD rule
Traditional IRA RMDs start at 73. Roth IRA RMDs never apply to the original owner—only to heirs after death. Many people think all IRAs have RMDs and take unnecessary withdrawals.

✅ Fix: If you want tax-free growth, keep funding Roth conversions or backdoor Roths into your Roth IRA. At 73, there's no deadline—it's a stealth tax haven.

Step-by-Step Checklist

• Confirm your birth date is after June 30, 1951 (or if before, that you've already started RMDs)
• Make a list of all traditional IRAs, 401(k)s, and 403(b)s you own
• Get the December 31 balance from each account (brokerage statements)
• Add up all traditional IRA balances (SEP, SIMPLE, and traditional IRAs are treated as one group)
• Separately, add up all 401(k) and 403(b) balances
• Go to the IRS Publication 590-B table and find your age at the end of the calendar year
• Divide each account group balance by the corresponding IRS factor
• Verify your total RMD for the year (sum of both groups)
• Execute the withdrawal(s) from your chosen account(s) by December 31
• Request a detailed statement from your brokerage confirming the RMD withdrawal
• File a copy with your tax records—keep it for 7 years in case of audit

Using RMDs Strategically

You're required to take an RMD, but you're not required to spend it. Here's how smart retirees use RMDs:

1. Direct RMD to charity: Use a "qualified charitable distribution" (QCD) to send your RMD directly to a charity. Reduces taxable income and counts toward your RMD. (Age 70.5+ only; regular IRA rules, not inherited.)

2. Take it in a Roth conversion: Withdraw your RMD from your traditional IRA and convert it to Roth. You pay tax on the RMD (as you would anyway), but it's now tax-free forever. Smart if you expect higher tax rates later.

3. Reinvest for growth: If you don't need the cash, immediately reinvest the RMD in a taxable brokerage account. The RMD is taxed, but new contributions grow for 20+ years if you live long.

FAQ

Q: I'm 73 and have $500K in a traditional IRA and $500K in a Roth IRA. Is my RMD $500K?
A: No. Only the $500K in the traditional IRA is subject to RMD. The Roth $500K has zero RMD requirement. Your RMD is ~$500K ÷ 25.5 = ~$19,600.

Q: My employer's 401(k) plan doesn't allow in-service distributions. Can I delay my RMD?
A: Not usually. But you can roll the 401(k) to a rollover IRA (if the plan allows), then take the RMD from the IRA. Ask your plan administrator if in-service rollovers are permitted. Many plans allow them at age 59.5+.

Q: If I take my RMD in January and the market crashes 20% by December, do I owe a penalty?
A: Yes, if you didn't take enough. The RMD is based on the December 31 prior year balance, not current balance. If you took $19K in January but should have taken $25K, the $6K shortfall = 25% penalty ($1,500).

Q: Can my spouse's earnings help reduce my RMD?
A: No. RMDs are individual account rules. Your spouse's income, assets, or age don't affect your RMD calculation.

Q: What's the penalty if I miss my RMD?
A: 25% of the shortfall (up from 10% in 2022). If your RMD is $20K and you withdraw $5K, the shortfall is $15K, and the penalty is $3,750. You also owe income tax on the $15K you should have withdrawn.

Q: If I withdraw my RMD on January 1 but it takes 5 days to settle, am I late?
A: No. The settlement date doesn't matter—only when you initiate the withdrawal. Initiate by December 28 at the latest (to account for weekend delays).

Related Tools

• RMD calculator — compute your exact required minimum distribution
• RMD planner — map out RMD strategy across multiple years
• Roth conversion ladder — coordinate RMDs with Roth conversions
• Tax-bracket explainer — model the tax impact of your RMD withdrawal
• Retirement calculator — plan withdrawals throughout retirement

Next Steps: If you're within 2 years of age 73, audit your account statements this week. List all traditional accounts and their December 31 balances. Calculate your RMD using the IRS table. If you're already 73+, verify your 2026 RMD is scheduled and track the withdrawal.