Required Minimum Distributions in 2026 — the Rules, the Penalty, and What SECURE 2.0 Changed
A traditional retirement account defers tax for decades, but that deferral has a deadline. Required minimum distributions force money out of tax-deferred accounts on a schedule set by the IRS, whether or not the money is needed, and the penalty for missing one is steep enough that it deserves real attention every year once the obligation begins. Recent legislation has also changed the RMD age twice in recent years and reshaped how inherited accounts are handled. Here is where the rules actually stand for 2026.
The Current RMD Age — and Why It Keeps Moving
Under the SECURE 2.0 Act, the age at which required minimum distributions must begin rose from 72 to 73, and current law schedules a further increase to age 75 beginning in 2033. For most account holders reaching the applicable age in 2026, the first RMD must be taken by April 1 of the following year, with every subsequent year's distribution due by December 31. Choosing to delay the very first RMD into the following April means two distributions land in the same calendar year — the delayed first RMD and the second year's regular RMD — which can push a retiree into a higher bracket than spreading them across two separate years would have.
The rules apply to traditional IRA accounts, SEP and SIMPLE IRAs, and most employer-sponsored plans including 401(k)s, 403(b)s, and 457(b) plans. Someone still working past the applicable age, and who is not a 5% or greater owner of the business sponsoring the plan, can generally delay RMDs from that specific employer's plan until actual retirement — an exception that does not extend to a traditional IRA, which requires distributions to begin at the applicable age regardless of employment status.
How the RMD Amount Is Actually Calculated
Per IRS guidance, the required minimum distribution for a given year is calculated by dividing the account's balance as of December 31 of the prior year by a life expectancy factor drawn from the applicable IRS table — most commonly the Uniform Lifetime Table, unless a spouse who is the sole beneficiary and more than ten years younger applies a different joint life expectancy table. Each account generally must have its own RMD calculated separately, though IRA owners may aggregate the total RMD amount across multiple IRAs and withdraw it from any single account or combination of accounts, while 401(k) and similar employer plan RMDs generally must be taken separately from each specific plan.
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The Penalty for Missing an RMD
Under current law, failing to withdraw the full required minimum distribution by the deadline triggers an excise tax of 25% on the shortfall — the amount that should have been withdrawn but was not. This rate was reduced from a prior 50% penalty under SECURE 2.0, and it can be further reduced to 10% if the shortfall is corrected within a defined correction window and the taxpayer files the appropriate form reporting the error. Missing an RMD entirely by accident is more common than most people expect, particularly for account holders managing several old employer plans and IRAs across different custodians — reconciling every account's requirement each year is the only reliable way to avoid it.
The Inherited IRA 10-Year Rule
The original SECURE Act eliminated the ability of most non-spouse beneficiaries to stretch distributions from an inherited IRA over their own life expectancy, replacing it with what is commonly called the ten-year rule — a requirement that the entire inherited account generally be emptied by the end of the tenth year following the original owner's death. Subsequent IRS guidance clarified that if the original owner had already begun taking RMDs before death, most beneficiaries subject to the 10-year rule must also take annual distributions during the ten-year window, not simply withdraw everything in the final year — a detail that surprised many beneficiaries and their preparers when it was finalized. Spouses, minor children of the original owner, disabled or chronically ill beneficiaries, and beneficiaries less than ten years younger than the original owner are treated as eligible designated beneficiaries and are exempt from the ten-year rule, retaining more favorable stretch options instead.
The QCD — a Direct Way to Reduce the RMD's Tax Bite
For account holders who are charitably inclined, a qualified charitable distribution sent directly from a traditional IRA to a qualified charity can satisfy some or all of the year's RMD while excluding that amount from taxable income entirely — a qualified charitable distribution strategy that deserves its own dedicated look, since it interacts directly with the RMD calculation and timing rules discussed here. Beyond charitable giving, RMD planning also interacts with Roth conversion timing, since converting funds before RMDs begin — separate from a qualified charitable distribution used after RMDs start — can reduce the size of future required distributions, and with the broader retirement income sequencing we cover in our guide to retirement income tax planning.
How Tax Wealth Consultant Approaches RMD Planning
Tax Wealth Consultant tracks every account subject to an RMD requirement, confirms the correct calculation and aggregation across multiple accounts, monitors inherited IRA distribution schedules under the 10-year rule, and coordinates RMD timing with Roth conversions and charitable giving strategies where they apply. A required distribution should never become an accidental penalty — the calendar and the calculation are both entirely knowable well in advance.
The deadline is fixed. The tax impact of how you meet it is not.
Schedule your confidential 30-minute review with Tax Wealth Consultant today.
taxwealthconsultant.com | (949) 409-8335
Tax Wealth Consultant provides tax planning, tax preparation, and wealth advisory services for business owners, professionals, and investors in Irvine, Orange County, and beyond.
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