Required Minimum Distributions (RMDs) are withdrawals the IRS mandates from most traditional retirement accounts once you reach a certain age — and those ages are changing under current law. This article explains when RMDs begin in 2026, how they are calculated, and practical ways to reduce the tax impact of RMDs as part of a broader retirement income plan.
What Are RMDs and When Do They Begin in 2026?
An RMD is the minimum amount the IRS requires you to withdraw from eligible retirement accounts each year once you reach a specified age. These withdrawals are generally taxable as ordinary income.
Under current law:
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Age 73: You must begin RMDs if you are born between 1951 and 1959.
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Age 75: You will begin RMDs if you are born in 1960 or later, with this rule in effect starting in 2033.
The first RMD is due by April 1 of the year after you reach the applicable age. After that, all RMDs must be taken by December 31 each year. However, I recommend you do not delay your first RMD until the following year as it will require to take two (taxable) distributions in the same tax year.
Important Notes
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RMDs apply to traditional IRAs, SEP IRAs, SIMPLE IRAs, 401(k)s, 403(b)s, and other defined contribution plans.
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You can withdraw more than the minimum in any year.
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Roth IRAs do not require RMDs during the account owner’s lifetime, though beneficiaries must take distributions after the owner’s death.
Required Minimum Distributions often force income at inconvenient times, which is why they should be addressed within a comprehensive retirement income planning strategy rather than reactively each year.
Can You Avoid RMDs?
No — once you reach the age where RMDs begin, you generally must take them. However, there are a handful of legitimate strategies to reduce their impact on your taxes and retirement planning. Reducing future RMDs often requires coordinated Roth conversion planning.
Reducing RMDs is rarely about a single tactic. It requires coordinated decisions around Roth conversions, charitable giving, and income timing as part of an overall tax planning for retirees approach.
Strategy 1: Use Qualified Charitable Distributions (QCDs)
Qualified Charitable Distributions (QCDs) allow you to give up to $105,000 per year directly from your IRA to a qualified charity, and the donated amount counts toward your RMD without adding to taxable income.
This means:
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Your RMD requirement is satisfied
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Your taxable income is lower
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You remain in potentially lower tax brackets
QCDs are especially useful for retirees who are charitably inclined and want to lower adjusted gross income (AGI) for Medicare, taxation of Social Security benefits, or subsidy eligibility such as ACA planning. (See also: Using the ACA to Retire Early) You do not have to itemize your tax return to benefit from a QCD.
Strategy 2: Roth Conversions Before RMD Age
A Roth conversion means paying tax now to move money from a traditional IRA to a Roth IRA — and Roth IRAs do not have RMDs during your lifetime.
Benefits:
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Decreases future RMD amounts
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Reduces future taxable income
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Provides tax-free income later
Roth conversions work best in years when your taxable income is lower than usual or before RMDs begin. This strategy is one core reason many retirees coordinate Roth conversions with Social Security timing and other planning moves. (See: Roth Conversions After 60) Converting assets during a Bear Market, when their value may be temporarily lower, is a very effective strategy.
Strategy 3: Qualified Longevity Annuity Contracts (QLACs)
A QLAC is a deferred annuity that allows you to remove a portion of your traditional IRA from RMD calculations while deferring income until a later age (as late as 85).
Key points:
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The amount invested in a QLAC is excluded from your IRA balance when calculating RMDs.
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Payouts begin at a future date you choose.
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QLACs can be effective for mitigating large RMDs during certain years.
Strategy 4: Still Working Exception With Employer Plans
If you are over the RMD age but still working, and not a 5% owner of the business, you might be able to delay RMDs from your current employer’s retirement plan (e.g., 401(k)), though this exception does not apply to IRAs.
This can provide additional flexibility in managing your income and taxable distributions. Ask your 401(k) if they can allow you to roll your IRA into your 401(k).
Strategy 5: Asset Location
Placing bonds in your IRA will also benefit because it will keep your IRA from having high growth. Otherwise, if your IRA grows by 20%, your RMDs will grow by 20%.
It is more tax efficient to keep growth stocks and ETFs in a taxable account and your bonds in an IRA. This allows you to receive favorable long-term capital gains treatment (0%, 15%, or 20%) for stocks, a tax benefit which is lost in an IRA. Lastly, if you hold the stocks for life, your heirs may receive a step-up in basis, which they will not in an IRA.
How RMDs Are Calculated
The IRS calculates RMDs using your retirement account balance at the end of the prior year divided by a life expectancy factor from the IRS tables. IRS
If you have multiple traditional IRA accounts, the IRS lets you aggregate your RMDs — calculate each separately, then take the total from any one or combination of traditional IRAs. However, RMDs from 401(k)s generally cannot be aggregated with IRAs.
What Happens if You Miss an RMD
If you fail to take your RMD or do not take enough, the IRS may impose a penalty. Previous penalties were 50% of the amount not withdrawn, but under later interpretation and relief provisions, a 25% excise tax may apply, reduced to 10% if corrected within two years using Form 5329. IRS
Recent IRS reminders underline the importance of meeting deadlines and taking RMDs accurately to avoid costly penalties.
How RMD Planning Fits Into Retirement Income Strategy
RMDs are just one piece of a larger retirement income plan. Thoughtful planning should consider:
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Social Security timing (See: Social Security: It Pays to Wait)
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Roth conversions before RMD age, especially if you are in the 12% tax bracket.
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Tax bracket management and Medicare IRMAA
For many retirees with $500,000–$5 million in investable assets, reducing the tax impact of RMDs can meaningfully improve their retirement cash flow and legacy goals. This topic is often part of a broader retirement or tax planning conversation. If you’d like help applying these ideas to your own situation, you can request an introductory conversation here.
Frequently Asked Questions
What age do RMDs start in 2026?
Most people are required to begin RMDs at age 73 if born in 1951–1959. For individuals born in 1960 or later, the RMD age will rise to 75 starting in 2033. Congress.gov
Can I avoid RMDs entirely?
No, you cannot avoid RMDs once you reach the required age, but strategies like Roth conversions, QCDs, QLACs, and delaying employer plan RMDs while working can reduce the tax impact.
Do Roth IRAs have RMDs?
No — Roth IRAs do not require RMDs during the account owner’s lifetime, making conversions a valuable planning tool.
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