As you approach retirement, understanding the rules surrounding Required Minimum Distributions (RMDs) is an important part of retirement and tax planning. RMDs are the minimum amounts that the IRS generally requires you to withdraw each year from certain retirement accounts once you reach the applicable age. 

Failing to take an RMD on time can result in a significant tax penalty, while taking distributions strategically can help you manage taxable income and plan for your retirement years. 

What Is a Required Minimum Distribution? 

A Required Minimum Distribution, commonly called an RMD, is the minimum amount you must generally withdraw each year from certain tax-deferred retirement accounts. 

RMD rules generally apply to: 

• Traditional IRAs 

• SEP IRAs 

• SIMPLE IRAs 

• 401(k) plans 

• 403(b) plans 

• 457(b) plans 

• Other qualifying employer-sponsored retirement plans 

RMDs generally do not apply during the original owner’s lifetime to Roth IRAs or designated Roth accounts in 401(k) and 403(b) plans. However, beneficiaries of Roth accounts can be subject to distribution requirements after the owner’s death. 

When Do RMDs Begin? 

Under current federal law, most individuals generally begin RMDs at age 73. 

The important point is that your first RMD is technically for the calendar year in which you reach age 73. However, you generally have until April 1 of the following year to take that first distribution. 

For individuals who reach age 74 after December 31, 2032, the applicable RMD age will increase to 75 under the SECURE 2.0 rules. 

RMD Timeline 

Here is a simplified timeline to help illustrate when distributions are required: 

Your Age	RMD Requirement
Before age 73	Generally no RMD required from traditional IRA solely because of age
Year you turn 73	First RMD is required for that year
April 1 of the following year	Deadline for your first RMD
December 31 of that same year	Second RMD is generally due
Every year thereafter	RMD generally due by December 31
Individuals reaching applicable age under later SECURE 2.0 rules	RMD age eventually increases to 75

Example: Turning 73 in 2026 

Suppose John turns 73 in 2026. 

John’s first RMD is for 2026. He has two choices: 

Option 1 — Take it during 2026 

John can take his 2026 RMD at any time during 2026, up to December 31. 

Option 2 — Delay the first RMD 

John can wait until April 1, 2027, to take his 2026 RMD. 

However, if John waits until 2027, he will also have a second RMD due by December 31, 2027, representing his 2027 RMD. 

That means John could have two taxable retirement distributions in the same calendar year. 

This is one reason retirement and tax planning before reaching age 73 can be particularly important. 

Example of the Two-RMD Situation 

Assume John turns 73 in 2026. 

• 2026 RMD: Due by April 1, 2027, if he delays his first distribution 

• 2027 RMD: Due by December 31, 2027 

If John waits until 2027 to take his first RMD, he could therefore have to take two RMDs during 2027. 

Although delaying the first distribution may sometimes be beneficial depending on the taxpayer’s circumstances, having two distributions in one year could increase taxable income and potentially affect other tax considerations. 

How Is an RMD Calculated? 

Your RMD is generally calculated using: 

1. The retirement account balance as of December 31 of the previous year, and 

2. An IRS life-expectancy/distribution factor based on your age and circumstances. 

For example, if a traditional IRA had a December 31 balance of $500,000, the applicable IRS distribution factor would be used to determine the RMD for the following year. 

The exact calculation can vary depending on the type of retirement account, your age, and your beneficiary situation. 

What Happens If You Have Multiple IRAs? 

If you own multiple traditional IRAs, the rules provide some flexibility. 

You generally calculate the RMD for each traditional IRA, but you can generally satisfy the combined RMD requirement by taking the required amount from one or more of your traditional IRAs. 

For example: 

• IRA #1 RMD: $5,000 

• IRA #2 RMD: $3,000 

• IRA #3 RMD: $2,000 

Your total RMD requirement is $10,000. 

You could generally take the $10,000 from one IRA or divide it among multiple IRAs. 

Different rules apply to employer-sponsored retirement plans, where RMDs generally must be taken separately from each applicable plan. 

What About a 401(k) If You Are Still Working? 

The rules for employer-sponsored retirement plans can differ from the rules for IRAs. 

If you are still working, you may be able to delay RMDs from your current employer’s qualified retirement plan until retirement, if the plan permits it. However, this exception generally does not apply to a person who owns more than 5% of the business sponsoring the plan. 

Traditional IRA owners generally cannot delay their RMD simply because they are still working. 

For example, a 74-year-old employee who continues working and has a traditional IRA generally still has to take the IRA’s RMD. 

Are RMDs Taxable? 

For a traditional IRA or other tax-deferred retirement account, the amount distributed is generally included in taxable income unless an exception applies, such as amounts representing after-tax basis. 

This means RMDs can affect your overall tax picture. 

A larger RMD may potentially increase: 

• Federal taxable income 

• State taxable income 

• The tax rate applied to other income 

• Taxation of Social Security benefits 

• Medicare-related income adjustments 

For this reason, RMD planning should ideally begin before the year you reach your RMD age. 

Can You Take More Than the Required Amount? 

Yes. 

An RMD is a minimum, not a maximum. You can generally withdraw more than your required minimum. 

However, taking more than your RMD in one year generally does not allow you to reduce the RMD required in a future year. Each year’s RMD generally needs to be satisfied separately. 

What Happens If You Don’t Take Your RMD? 

Missing an RMD can result in an excise tax on the amount that should have been distributed but wasn’t. 

Under current IRS guidance, the excise tax is generally 25% of the amount that should have been distributed. The tax can generally be reduced to 10% if the missed RMD is corrected within the applicable two-year correction period and the requirements are met. 

Because of the potential penalty, it is important not to wait until the last minute to determine your RMD. 

Consider Taking Your RMD Earlier in the Year 

There is generally no requirement that you wait until December to take your RMD. 

You could take the distribution: 

• Monthly 

• Quarterly 

• Once during the year 

• Or at another time permitted by your plan 

For example, someone with a $12,000 annual RMD might choose to receive $1,000 per month rather than taking the entire amount in December. 

The best approach depends on cash-flow needs, investment strategy, tax planning, and personal circumstances. 

Qualified Charitable Distributions Can Help 

For individuals who are charitably inclined, a Qualified Charitable Distribution (QCD) may be another retirement planning strategy. 

A qualifying QCD can count toward an IRA owner’s RMD while allowing the distribution to be paid directly to an eligible charity, subject to the applicable rules and limits. 

This can be an important strategy for eligible taxpayers who regularly make charitable contributions. 

RMD Planning Checklist 

As you approach age 73, consider reviewing the following: 

• Identify all retirement accounts. 

• Determine which accounts are subject to RMD rules. 

• Confirm your RMD beginning date. 

• Review your December 31 account balances. 

• Calculate your expected RMD. 

• Determine whether taking the first RMD before December 31 makes sense. 

• Consider the tax impact of your distributions. 

• Review whether a QCD may be appropriate. 

• Coordinate RMDs with Social Security and other retirement income. 

• Confirm that your financial institution processes the distribution before the applicable deadline. 

The Bottom Line 

Required Minimum Distributions are an important part of retirement and tax planning. For most traditional IRA owners, RMDs generally begin with the year you reach age 73, with the first distribution generally allowed to be delayed until April 1 of the following year. After that, annual RMDs are generally due by December 31. 

The decision of when to take your first RMD can have tax consequences. Waiting until April 1 may result in two RMDs being taxable in the same calendar year, while taking the first RMD during the year you turn 73 may spread the income across two tax years. 

Planning ahead can help you avoid penalties, manage taxable income, and make better use of your retirement savings. 

Important: This article is intended for general educational purposes and is based on current IRS guidance available in 2026. RMD rules can vary depending on the type of retirement account, employment status, ownership percentage, beneficiary circumstances, and other factors. Consult a qualified tax or financial professional regarding your individual situation. 

IRS Resources: IRS Required Minimum Distributions (RMDs) | IRS RMD Comparison Chart