What is the current age for Required Minimum Distributions (RMDs)?

The current age for Required Minimum Distributions (RMDs) depends on your birth year. If you were born between 1951 and 1959, your RMD age is 73. If you were born in 1960 or later, your RMD age will be 75.

What happens if I don't take my RMD?

If you fail to take your full Required Minimum Distribution (RMD) by the deadline, you will face a penalty of 25% of the amount you failed to withdraw. This penalty can be reduced to 10% if you correct the missed distribution promptly and notify the IRS.

Are Roth IRAs subject to RMDs?

No, Roth IRAs are not subject to RMDs for the original owner. This is a key advantage of Roth accounts, as your money can continue to grow tax-free indefinitely. However, beneficiaries who inherit a Roth IRA are generally subject to RMD rules.

Can I delay RMDs if I'm still working?

You can delay RMDs from your current employer's 401(k) or other employer-sponsored plan if you are still working for that employer and do not own more than 5% of the company. However, this exception does not apply to IRAs or 401(k)s from previous employers; you must take RMDs from those accounts once you reach RMD age.

How do I calculate my RMD?

To calculate your RMD, divide your account balance as of December 31st of the previous year by the life expectancy factor from the IRS Uniform Lifetime Table for your current age. Most account custodians will also provide this calculation for you.

Can I use my RMD for charitable donations?

Yes, if you are age 70½ or older, you can make a Qualified Charitable Distribution (QCD) directly from your IRA to an eligible charity. A QCD counts towards your RMD and is excluded from your taxable income, offering a tax-efficient way to give. The annual limit for QCDs is expected to be around $105,000 in 2026.

What is the 10-year rule for inherited IRAs?

The 10-year rule generally applies to non-spousal beneficiaries who inherit an IRA from someone who died on or after January 1, 2020. It requires the entire inherited account to be fully distributed by December 31st of the year containing the 10th anniversary of the original owner's death. Depending on whether the original owner had started RMDs, annual distributions may also be required during this period.

Required Minimum Distribution Guide 2026 | One Percent…