RMD Planning in 2026: Age 73 & 75 Rules, Roth Conversions, and QCDs
Required Minimum Distributions (RMDs) are required annual withdrawals from certain tax-deferred retirement accounts. For many retirees, RMDs can increase taxable income even when the money is not needed for current spending.
RMD planning is most useful before your required beginning date. A careful plan may include managing Traditional IRA and 401(k) balances, evaluating Roth conversions, considering charitable goals, and estimating the effect on Social Security taxation and Medicare premiums.
For related planning topics, see Social Security federal tax rules, Medicare IRMAA income limits, and HSA retirement and Medicare rules.
RMD rules affect Traditional IRAs and many workplace retirement plans.
Key RMD Ages
For people born from 1951 through 1959, the applicable RMD age is generally 73. For people born in 1960 or later, the applicable RMD age is generally 75. Your year of birth, account type, work status, and plan rules all matter.
1. Which Accounts Have RMDs?
RMD rules generally apply to Traditional IRAs, SEP IRAs, SIMPLE IRAs, 401(k)s, 403(b)s, governmental 457(b) plans, and other defined-contribution retirement plans.
| Account Type | RMD During Owner's Lifetime? | Important Note |
|---|---|---|
| Traditional, SEP, and SIMPLE IRA | Yes | RMDs generally begin at your applicable RMD age, even if you are still working. |
| Traditional 401(k), 403(b), or governmental 457(b) | Yes | A current-employer plan may allow a still-working delay in limited situations. |
| Roth IRA | No | No lifetime RMD is required for the original owner. |
| Designated Roth 401(k) or Roth 403(b) | No | Beginning in 2024, original owners are not required to take lifetime RMDs from designated Roth accounts. |
Inherited retirement accounts follow separate rules. This article focuses on original account owners, not beneficiaries of inherited IRAs or inherited workplace plans.
2. How Your RMD Is Calculated
For most account owners, the annual calculation starts with the account balance on December 31 of the previous year. That balance is divided by the life-expectancy factor from the IRS Uniform Lifetime Table.
Prior December 31 Account Balance ÷ IRS Life-Expectancy Factor = RMD
For example, the IRS Uniform Lifetime Table uses a factor of 26.5 at age 73. A $500,000 Traditional IRA balance on December 31 of the prior year would produce an estimated RMD of about $18,868.
A different table may apply if your spouse is your sole beneficiary and is more than 10 years younger than you. Account values, annuity holdings, inherited assets, and plan-specific rules can also affect the calculation.
3. First RMD Deadline and the Two-Distribution Issue
Your first RMD is for the year you reach your applicable RMD age. You may generally delay that first withdrawal until April 1 of the following year.
However, every later RMD must generally be taken by December 31. Delaying the first RMD can therefore create two taxable distributions in one calendar year: the delayed first RMD and the second-year RMD.
Taking two distributions in one year may increase adjusted gross income, affect the taxable portion of Social Security benefits, increase Medicare IRMAA exposure two years later, or move part of your income into a higher tax bracket. Delaying may still be appropriate in some cases, but it should be an intentional decision.
4. Planning Options Before RMDs Begin
| Planning Option | Potential Benefit | Key Consideration |
|---|---|---|
| Roth conversion | Can reduce future pre-tax account balances and future RMDs. | The converted amount is generally taxable in the year of conversion. |
| Qualified Charitable Distribution (QCD) | Can satisfy part or all of an IRA RMD while keeping the qualified amount out of federal adjusted gross income. | Available only to eligible IRA owners age 70½ or older who make direct transfers to eligible charities. |
| Still-working delay | May postpone RMDs from a current employer’s workplace plan. | Does not apply to IRAs or old employer plans and may not apply to 5% owners. |
| Spending or gifting from planned withdrawals | May help align withdrawals with actual household, family, or charitable goals. | The withdrawal is generally taxable before it is spent or gifted. |
5. Roth Conversions Before and After RMD Age
Roth conversions are often considered during lower-income years between retirement and the beginning of RMDs. A conversion can move money from a Traditional IRA or eligible workplace plan to a Roth account, but the converted amount is generally included in taxable income for that year.
After RMDs begin, the RMD for that year must generally be taken first. Required minimum distributions cannot be rolled over or converted to a Roth IRA. After the RMD is satisfied, you may be able to convert additional funds, subject to account rules and tax consequences.
Before converting, estimate your federal and state income taxes, potential Medicare IRMAA effects, Social Security taxation, available cash to pay taxes, and future expected RMDs. A conversion that creates a temporary premium increase may still be reasonable, but it should be evaluated as part of a multi-year plan.
6. QCD Rules for 2026
A Qualified Charitable Distribution is a direct payment from an IRA to an eligible charity. You must be age 70½ or older on the date of the distribution. For 2026, the annual QCD exclusion limit is $111,000 per eligible IRA owner.
A properly completed QCD can count toward your RMD. Unlike taking an RMD personally and then making a charitable gift, a qualified QCD generally stays out of adjusted gross income. This may be helpful for taxpayers who do not itemize deductions or who want to manage income-based tax and Medicare calculations.
The payment must move directly from the IRA custodian to an eligible charity. Donor-advised funds, private foundations, and most supporting organizations generally do not qualify. Keep the charity’s written acknowledgment and retain your IRA distribution records.
7. The Still-Working Exception
Some people who continue working after their applicable RMD age may delay RMDs from their current employer’s 401(k), 403(b), or other qualifying workplace plan until retirement. This exception is not automatic. The plan must permit it.
The exception generally does not apply to Traditional IRAs, SEP IRAs, SIMPLE IRAs, or retirement plans from former employers. It also generally does not apply if you own more than 5% of the company sponsoring the plan.
Before relying on this rule, contact your plan administrator and confirm the plan’s written distribution rules. Moving an active workplace account into an IRA can remove access to this potential delay.
8. Common RMD Questions
Can I combine RMDs from several Traditional IRAs?
You must calculate the RMD separately for each Traditional IRA, SEP IRA, and SIMPLE IRA. However, you can generally withdraw the combined total from one IRA or from several IRAs. Workplace-plan RMDs are generally calculated and distributed separately by plan.
Can an RMD be reinvested?
You may invest the money after receiving an RMD in a taxable brokerage account or use it for other goals. However, the RMD itself cannot be rolled into another tax-deferred account or converted to a Roth IRA.
What happens if I miss an RMD?
The general additional tax on an RMD shortfall is 25% of the amount not withdrawn. The rate may be reduced to 10% when the shortfall is corrected within the applicable correction window and the required tax return is filed. The IRS may waive the tax for reasonable cause in appropriate cases. Form 5329 is generally used to report the additional tax or request a waiver.
9. Annual RMD Planning Checklist
- Confirm your applicable RMD age based on your birth year.
- List every Traditional IRA, SEP IRA, SIMPLE IRA, and workplace retirement account.
- Calculate or confirm each account’s required amount before the deadline.
- Review whether delaying the first RMD would create two taxable distributions in one year.
- Estimate the effects of planned withdrawals, Roth conversions, capital gains, and charitable giving.
- Check potential effects on Medicare premiums, Social Security taxes, and state taxes.
- Keep records of distributions, QCD acknowledgments, tax forms, and account balances.
RMDs are a normal part of using tax-deferred retirement accounts. Planning before your required beginning date can give you more flexibility, but the appropriate approach depends on your tax rate, spending needs, charitable goals, health coverage, account balances, and estate plans.
Sources and Further Reading
- IRS: Retirement Plan and IRA Required Minimum Distribution FAQs
- IRS Publication 590-B: Distributions from Individual Retirement Arrangements
- IRS RMD Comparison Chart: IRAs and Defined Contribution Plans
- IRS Notice 2025-67: 2026 IRA and QCD Limits
- IRS Instructions for Form 5329: Additional Taxes on Retirement Plans
Last reviewed: July 2026
Educational disclaimer: This article is for general educational purposes only and is not tax, legal, investment, or financial advice. RMD rules depend on your birth year, account type, employer-plan provisions, beneficiary designations, and personal tax situation. Review current IRS guidance and consult a qualified tax professional or financial professional before making retirement-account decisions.
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