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Retirement rules

RMD Ages Under SECURE 2.0: 73 or 75?

The age you must start taking required minimum distributions from traditional retirement accounts is no longer 72. Under SECURE 2.0, it's 73 or 75 depending on when you were born — and getting it wrong carries a penalty of up to 25%.

Updated September 2026 · 6 min read

Find your RMD age

BornRMD age
1950 or earlier72 (already started under old rules)*
1951 – 195973
1960 or later75

*Born before July 1, 1949? Under pre-SECURE rules your RMD age was 70½, not 72.

Your first RMD is due by April 1 of the year after you reach your RMD age — but taking it in that April means two distributions in one tax year, which usually means more tax. Most people take the first RMD in the calendar year they reach the age.

How RMDs are calculated

Each year's RMD = your traditional IRA/401(k) balance on December 31 of the prior year ÷ the IRS Uniform Lifetime Table factor for your age. The factor at 73 is 26.5 (about 3.8% of the balance); at 80 it's 20.2 (about 5%); at 90 it's 12.2 (about 8.2%). The percentage rises every year, so RMDs grow even if your balance doesn't.

Why this matters for planning: a $1.5M traditional balance at 73 produces roughly a $57,000 RMD — taxed as ordinary income, stacked on top of Social Security and any pension. Large pre-tax balances can push you into higher brackets and IRMAA territory whether you need the money or not.

Which accounts have RMDs?

The penalty

Miss an RMD (or take too little) and the penalty is 25% of the shortfall — reduced to 10% if you correct it promptly. It's one of the steepest penalties in the tax code, which is why automating RMDs with your custodian is worth doing.

Strategies to shrink future RMDs

Roth conversions in your 60s

The years between retirement and your RMD age are the prime window to convert traditional dollars to Roth at lower rates. Every dollar converted is a dollar that will never generate an RMD. See our Roth conversion guide for the full playbook.

Qualified charitable distributions (QCDs)

Once you're 70½, you can donate up to $111,000/year for 2026 (indexed annually for inflation) directly from your IRA to charity. The limit is per person, so a married couple can donate up to $222,000 from their respective IRAs. QCDs count toward your RMD but are excluded from taxable income — better than taking the RMD and then donating cash, especially if you don't itemize.

Delay Social Security thoughtfully

RMDs and Social Security stacking in the same years is what creates bracket spikes. Coordinating when each income stream starts — modeled year by year — is the core of a good drawdown plan.

See your future RMDs, year by year

NestCalc models your RMDs under SECURE 2.0 rules (73 or 75 by birth year) across 1,000 market scenarios — with taxes, IRMAA, and Roth conversions included.

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Frequently asked questions

Do I have to take an RMD if I don't need the money?

Yes. RMDs are mandatory regardless of need. You can reinvest the after-tax proceeds in a taxable account — the requirement is about paying the tax, not about spending.

Can I take my RMD from just one IRA if I have several?

Yes — IRA RMDs can be aggregated: calculate the total across all your traditional IRAs and withdraw it from any combination of them. 401(k) RMDs must come from each 401(k) separately.

Are RMDs taxed as capital gains?

No — as ordinary income, at your marginal rate. Withholding is optional but usually wise.

What if I inherited an IRA?

Most non-spouse beneficiaries must empty it within 10 years, with annual RMDs required in years 1–9 if the original owner was already taking RMDs. Spouses have more options, including rolling it into their own IRA.

Educational content only — not tax or financial advice. IRS tables and thresholds change; verify current figures and consider consulting a tax professional.

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