Required Minimum Distribution (RMD) Calculator 2026: When to Take RMDs and How Much

Let me tell you about Margaret, a 72-year-old retired teacher who called me in a panic last December.

"I just got a letter from my IRA custodian saying I need to take a Required Minimum Distribution," she said. "But I don't need the money. I'm living on my pension and Social Security just fine. Can't I just leave it in the account to keep growing?"

Unfortunately, no. Once you hit age 73, the IRS requires you to start withdrawing money from your traditional IRAs, 401(k)s, and similar retirement accounts—whether you need it or not. And if you don't take out enough, the penalty is brutal: 25% of the shortfall.

But here's what Margaret didn't know: with smart planning, she could have taken her RMDs in a way that minimized taxes, avoided Medicare surcharges, and even used the money to create tax-free income for later. Most people don't know these strategies exist.

In this guide, I'll show you everything you need to know about RMDs in 2026, including how to calculate yours, when to take them, and how to avoid common (and expensive) mistakes.

What Are Required Minimum Distributions (RMDs)?

Required Minimum Distributions are exactly what they sound like: the minimum amount you must withdraw from your tax-deferred retirement accounts each year once you reach a certain age.

Why does the IRS force you to take money out?

Simple: they want their tax revenue. You got a tax deduction when you contributed to your traditional IRA or 401(k). The money grew tax-deferred for decades. Now the IRS wants you to pay taxes on it—and they're not willing to wait forever.

Which Accounts Have RMDs?

RMDs apply to:

• Traditional IRAs
• SEP IRAs
• SIMPLE IRAs
• Traditional 401(k)s, 403(b)s, and 457(b)s
• Inherited IRAs (different rules apply)

RMDs do NOT apply to:

• Roth IRAs (during your lifetime—your heirs will have RMDs)
• Roth 401(k)s in your employer's plan (but only until you separate from service—then they must be rolled to a Roth IRA to avoid RMDs)
• Health Savings Accounts (HSAs)

When Do RMDs Start? Understanding the Age 73 Rule

Thanks to the SECURE 2.0 Act, the RMD starting age increased from 72 to 73 in 2023. Here's the breakdown:

So if you were born in 1953 (turning 73 in 2026), this is your year to start taking RMDs.

The "April 1 Rule" for Your First RMD

Here's where it gets tricky. You have until April 1 of the year after you turn 73 to take your first RMD.

Let's say you turn 73 on June 15, 2026:

• You could take your 2026 RMD anytime between January 1, 2026, and December 31, 2026
• OR you could delay it until April 1, 2027

Sounds like free money, right? Not so fast. If you delay your first RMD to 2027, you'll have to take two RMDs in 2027: one for 2026 (by April 1) and one for 2027 (by December 31).

That means doubling up your taxable income, which could:

• Push you into a higher tax bracket
• Trigger Medicare IRMAA surcharges
• Make more of your Social Security taxable
• Increase state income taxes

How to Calculate Your RMD in 2026

The RMD calculation is straightforward once you know the formula:

Step-by-Step RMD Calculation

Step 1: Find your account balance on December 31, 2025

This should be on your year-end statement from your IRA custodian. Include all your traditional IRAs, but calculate the total RMD across all of them (you can take it from one account or split it across multiple accounts).

Step 2: Look up your life expectancy factor

Use the IRS Uniform Lifetime Table for your age. Here are the most common ages:

Step 3: Divide your balance by the factor

You must withdraw at least $32,520 from your IRA(s) by December 31, 2026. If you take less, you'll owe a penalty.

Special Cases: 401(k)s and Multiple Accounts

Multiple IRAs:

• Calculate RMD separately for each traditional IRA
• Add them up to get your total RMD
• You can take the total from one IRA, or split it across multiple accounts (your choice)

Multiple 401(k)s:

• Calculate RMD separately for each 401(k)
• You must take the RMD from each account separately (you cannot aggregate like you can with IRAs)

Inherited IRAs:

• Different rules apply based on when you inherited the account and your relationship to the deceased
• Post-2020 inherited IRAs usually must be depleted within 10 years (no annual RMDs, just a 10-year deadline)

What Happens If You Miss Your RMD?

The penalties used to be devastating—50% of the amount you failed to withdraw. Thankfully, the SECURE 2.0 Act reduced the penalty to 25% (and potentially 10% if you correct it quickly).

If you realize you missed an RMD:

1. Take the missed distribution immediately
2. File Form 5329 with your tax return
3. Include a letter explaining the error and the corrective action taken
4. The IRS may waive the penalty if you have a reasonable explanation and acted promptly

Tax-Smart RMD Strategies for 2026

Now for the good stuff: how to take your RMDs in a way that minimizes taxes and maximizes your retirement security.

Strategy #1: Qualified Charitable Distributions (QCDs)

This is hands-down the best RMD strategy if you donate to charity. Here's how it works:

Starting at age 70½ (note: younger than the RMD age), you can transfer up to $105,000 per year (indexed for inflation in 2026) directly from your IRA to a qualified charity. This counts toward your RMD but doesn't count as taxable income.

QCD benefits:

• Reduces your Adjusted Gross Income (AGI)
• Helps you avoid higher Medicare IRMAA brackets
• Reduces taxation of Social Security benefits
• Works even if you take the standard deduction (unlike itemizing charitable donations)

Strategy #2: Convert Excess RMDs to Roth

If you don't need your full RMD for living expenses, consider this strategy:

1. Take your required RMD
2. Immediately convert an equivalent amount from your traditional IRA to Roth IRA
3. Pay the taxes from other funds (not from the IRA itself)

Yes, you'll pay taxes on both the RMD and the conversion in the same year. But the converted Roth money grows tax-free from that point forward, and you won't have RMDs on it in future years.

This is especially powerful if you're in a low tax bracket now but expect higher brackets later (or want to leave tax-free money to heirs).

Strategy #3: Time Your RMD to Minimize IRMAA

Remember: Medicare IRMAA surcharges are based on your income from two years ago. Your 2026 Medicare premiums are based on your 2024 income.

If you had a one-time income spike in 2024 (sold a property, exercised stock options, large Roth conversion), you can file Form SSA-44 to request a reduction in your IRMAA if your income has since decreased.

Strategy #4: Take More Than the Minimum

"Required Minimum Distribution" doesn't mean you can only take the minimum. You can always take more.

Why would you?

• Tax bracket management: If you're near the top of the 12% bracket, you might take extra distributions to "fill up" the bracket before jumping to 22%
• Reducing future RMDs: Every dollar you take now is one less dollar subject to RMDs (and taxes) later
• Legacy planning: If you want to leave Roth assets to heirs but traditional assets to charity, accelerate traditional IRA distributions now

Strategy #5: Still Working? Delay 401(k) RMDs

If you're still working at age 73+ and participating in your employer's 401(k), you can delay RMDs from that 401(k) until you retire—as long as you don't own 5% or more of the company.

This doesn't apply to IRAs, only employer plans.

Even better: you might be able to roll your IRAs into your current employer's 401(k) to delay RMDs on those accounts too (check if your plan allows this).

Common RMD Mistakes to Avoid

Mistake #1: Waiting Until December

Many people wait until late December to take their RMD, thinking they're maximizing tax-deferred growth. But this creates problems:

• If the market drops in December, you're selling at potentially lower prices
• If you forget or the custodian delays, you might miss the deadline
• You lose the ability to spread the tax impact across estimated quarterly payments

Better approach: Take monthly or quarterly distributions throughout the year.

Mistake #2: Not Withholding Enough Taxes

Your RMD is fully taxable as ordinary income. If you don't withhold taxes or make estimated payments, you could owe thousands in April plus underpayment penalties.

Most custodians will withhold 10% by default, but that's often not enough if you're in the 22% or 24% bracket.

Mistake #3: Forgetting About an Old 401(k)

I've seen people dutifully take RMDs from their current IRAs but completely forget about an old 401(k) from a previous employer. Each account has its own RMD requirement.

Solution: Consolidate old 401(k)s into an IRA or your current employer's plan for easier management.

Mistake #4: Taking RMD from Roth 401(k)

Roth 401(k)s technically have RMDs (unlike Roth IRAs). But you can avoid this by rolling your Roth 401(k) to a Roth IRA before you turn 73.

Mistake #5: Not Planning for Increased RMDs

Your RMD increases every year as your life expectancy factor decreases. At 73, you withdraw about 3.8% of your balance. By age 85, it's 6.3%. By age 95, it's nearly 10%.

If you're also taking additional withdrawals for living expenses, you could be drawing down your portfolio at 8-12% per year in your 80s—a dangerously high rate.

Your 2026 RMD Action Plan

Here's exactly what you need to do if you're facing RMDs this year:

The Bottom Line: Don't Let RMDs Control You

Required Minimum Distributions are exactly that—required. You can't avoid them once you hit age 73 (unless you use strategies like QCDs or Roth conversions beforehand).

But with smart planning, RMDs don't have to be a tax disaster. You can:

• Use QCDs to eliminate taxes on donations you were making anyway
• Time distributions to avoid Medicare IRMAA surcharges
• Convert extra RMDs to Roth for tax-free growth
• Take more than the minimum in low-income years to reduce future RMDs
• Coordinate RMDs with Social Security and other income sources

The worst thing you can do is ignore RMDs until you get a penalty notice from the IRS. Plan ahead, calculate correctly, and use the strategies that make sense for your situation.

And if you're not sure where to start? Run the numbers. Model different scenarios. See how RMDs interact with your overall retirement plan.