Key Takeaways
- Your RMD age is 73 if born 1951 through 1959, and 75 if born 1960 or later.
- A missed RMD costs 25% of the shortfall, cut to 10% if you fix it in time.
- Form 5329 lets you ask the IRS to waive the penalty entirely, at no cost.
- Roth 401(k)s no longer require RMDs, and the 2026 QCD limit is $111,000.
If you turn 73 this year, the IRS wants you to start pulling money out of your traditional retirement accounts, whether you need it or not.
Born in 1960 or later? Your start age is 75. Skip a required withdrawal and the penalty is 25% of whatever you should have taken.
The rules have changed twice in a few years, which is why I get so many questions about them. Here’s where things stand for 2026, plus a new IRS fix for RMDs your custodian got wrong.
What Age Do RMDs Start?
Your RMD age depends on your birth year, thanks to SECURE 2.0’s phased increase.
| Birth year | RMD age |
|---|---|
| 1950 or earlier | 72 (already started) |
| 1951 to 1959 | 73 |
| 1960 or later | 75 |
If you were born in 1959, you may have seen conflicting answers. A drafting glitch in SECURE 2.0 seemed to give that year both 73 and 75. The IRS’s 2024 proposed regulations say 73, and the final version of that rule is still pending.
Your first RMD gets a grace period: you can wait until April 1 of the year after you reach your RMD age. Every RMD after that, including the second one if you delayed the first, is due by December 31.
Robert, born in 1953, turned 73 in 2026. He can take his first RMD anytime in 2026 or wait until April 1, 2027.
If he waits, he owes two RMDs in 2027, which could push him into a higher tax bracket. Most people are better off taking the first one in the year they turn 73.
How Much Do You Have to Withdraw?
Divide your account balance on December 31 of last year by your factor from the IRS Uniform Lifetime Table.
Gloria, 76, had $450,000 in her traditional IRA at the end of last year. Her factor at 76 is 23.7, so her RMD this year is $450,000 ÷ 23.7, or about $18,987.
The factor shrinks every year, so a bigger share of the balance comes out as you age. That’s by design: the table assumes you’re drawing the account down over your lifetime. The IRS’s RMD FAQs link the full tables.
Which Accounts Need an RMD, and Which Don’t
Traditional IRAs, traditional 401(k)s, 403(b)s and most other employer plans all require RMDs once you reach your RMD age. The big exception is Roth money.
Roth 401(k) and Roth 403(b) plans stopped requiring RMDs on January 1, 2024. Before that, oddly, you had to take RMDs from a Roth 401(k) even though the withdrawals were tax-free. Roth IRAs have never required RMDs for the original owner.
Still working past your RMD age? If you own 5% or less of the company, you can usually delay RMDs from your current employer’s plan only until you retire. IRAs and old 401(k)s from past jobs still need RMDs on schedule.
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Several Accounts: Which RMDs You Can Combine
This trips people up constantly. IRA RMDs can be combined. Figure the RMD for each IRA, add them up, then take the total from any one IRA or split it however you like.
401(k) RMDs can’t be combined across employer plans. Two old 401(k)s from two employers means two separate withdrawals. 403(b)s get their own rule: you can combine them, but only with other 403(b)s.
If juggling several old 401(k)s sounds like a headache, rolling them into one IRA turns several RMD calculations into one.
Inherited Accounts: The 10-Year Rule
If you inherited an IRA or 401(k) from someone who died after 2019, the old “stretch IRA” is mostly gone for non-spouse beneficiaries. Most now have to empty the account by December 31 of the 10th year after the owner’s death.
The IRS has also settled the long-running annual-withdrawal question. If the owner had already started RMDs, you must take yearly RMDs during the 10 years too. If they hadn’t started, you can wait and take it all by year 10.
Spouses still get more choices: treat the IRA as their own, roll it into their own IRA, or use their own life expectancy. My inherited IRA guide has worked examples for both cases.
Missed an RMD? The Penalty and Three Ways to Shrink It
The excise tax on a missed or short RMD is 25% of the amount you didn’t take, down from 50% before SECURE 2.0. Here’s how it can drop further.
Fix it in time: 10%
Take the missed amount within the correction window and the tax falls to 10%. The window generally runs through the end of the second year after the year the RMD was due. It closes sooner if the IRS mails you a deficiency notice or assesses the tax first.
Ask for a waiver: often $0, and free
You can ask the IRS to waive the tax completely if the shortfall came from a reasonable error and you’re fixing it. Take the missed amount, then file Form 5329 with a short explanation attached. The Form 5329 instructions show how to request the waiver.
The IRS decides each request on its facts. A custodian that miscalculated or didn’t send the money is one of the most common reasons people give.
Frank, 78, asked his custodian to send his $10,000 RMD, but it only sent $8,000. That $2,000 shortfall carries a $500 tax at 25%, or $200 at 10%. If he takes the $2,000 and requests a waiver on Form 5329, it can be $0.
New: ICRS for custodian mistakes (from May 1, 2027)
On October 22, 2026, the IRS created the IRA Compliance Resolution System (ICRS) in Rev. Proc. 2026-33 (IR-2026-126). It opens May 1, 2027.
It covers a missed RMD only when a service provider’s mistake caused it, such as a custodian that didn’t follow its own procedures. The fix is set by the IRS: the custodian sends out every missed RMD plus earnings. In appropriate cases, the IRS then waives the 25% tax.
Either the custodian or you can file, through Form 15443 on Pay.gov. A single request costs $3,500 before 2028. A custodian can file one group request covering many owners: $10,000 for the first 10, plus $250 each after that, up to $50,000.
For one person, $3,500 is more than most missed-RMD penalties. In Frank’s case, the free Form 5329 waiver is the obvious route. I expect ICRS to matter most when a custodian error hit many clients, or ran for several years.
ICRS also handles late 60-day rollovers. I cover that side, and when the fee is worth it, in my 401(k) to IRA rollover guide, which is also where to start if you want to fold several old 401(k)s into one IRA.
Using a QCD to Cover Your RMD
A Qualified Charitable Distribution (QCD) sends money straight from your IRA to a qualified charity. It counts toward your RMD and never shows up as taxable income. The 2026 limit is $111,000 per person, and you must be 70½ or older.
Karen, 74, has a $20,000 RMD and doesn’t need the cash. Her custodian sends $20,000 to her church and two other charities. Her RMD is covered, and none of it appears as income, which beats withdrawing it, paying tax, then donating.
QCDs only work from IRAs, not 401(k)s. The money has to go directly from the custodian to the charity. A QCD also works whether or not you itemize, which I explain alongside the $6,000 senior deduction.
RMD Mistakes I Hear About Every Year
Trusting the custodian’s number blindly. Most get it right, but if the amount is wrong, the penalty is yours. Double-check it in the year you reach your RMD age and the year after you inherit an account.
Forgetting an old 401(k). Accounts from past jobs fall off the radar, but the RMD and the 25% tax apply the same way.
Stacking two RMDs in one year. Waiting until April 1 for your first RMD puts two withdrawals in one tax year.
Skipping annual RMDs on an inherited account. If the owner had started RMDs, don’t wait until year 10.
Not filing Form 5329 after a miss. Taking the money isn’t enough. The form is how you report the shortfall and ask for the waiver.
What I’m Watching for RMDs in 2027
Here’s what’s coming:
- 2027 QCD limit. It’s indexed to inflation and comes out with the IRS’s 2027 retirement plan limits, expected in November. I’ll add it here, and the rest of the limits go on my 2027 401(k) and IRA limits page.
- Final RMD rules. Under Announcement 2026-7, the remaining SECURE 2.0 RMD rules apply no earlier than the first full year starting six months after they’re published. That’s when the 1959 answer becomes official.
- January 20, 2027: comments close on ICRS, which may expand to more mistakes later.
- May 1, 2027: ICRS opens for custodian-caused RMD misses.
Plans also have until December 31, 2026 to write the Roth 401(k) RMD change into their documents. Most have run that way since 2024. For how RMDs fit with other milestones, see my key retirement ages guide.
Need money before RMD age instead? My early withdrawal penalty guide covers the 10% rule and its exceptions.
