Certain kinds of tax-advantaged retirement accounts allow you to invest with pre-tax dollars and benefit from tax-deferred growth. The government eventually wants to get its cut, though. So, there are required minimum distribution (RMD) rules that require you to eventually begin making withdrawals from these accounts. When you do, you are usually taxed at your ordinary income tax rate.
You need to follow RMD rules because the penalties can be harsh if you don't. These rules have also changed over time. In fact, here are three big rule changes you need to know about for 2026.
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1. You get to wait longer before taking RMDs
Under the traditional rules, RMDs started at 70 1/2. But then two pieces of legislation were passed: The SECURE 1.0 Act in 2019 and the SECURE 2.0 Act in 2022. SECURE 1.0 raised the starting age to 72, and SECURE 2.0 raised it even further. These changes only applied to people born after a certain time, though, so RMD requirements are now based on the account holder's birth year.
Specifically, RMD requirements are now based on the birth year of the account holder. The table below shows when you should begin your required minimum distributions, based on when you were born. As you can see, anyone turning 66 in 2026 or beyond will get to wait longer to take their required minimum distributions.
|
If Your Birth Date Was: |
This Is When RMDs Start |
|---|---|
|
Before July 1, 1949 |
70 1/2 |
|
Between July 1, 1949, to Dec. 31, 1950 |
72 |
|
Between Jan. 1, 1951, to Dec. 31, 1959 |
73 |
|
In 1960 or later |
75 |
Data source: Congress.gov.
2. You don't have to take RMDs from Roth accounts anymore
RMDs can be very frustrating if you'd rather leave your money in your 401(k), in your IRA, or in other tax-deferred accounts because you don't really need it yet. Being forced to take required minimum distributions when you don't want to isn't just annoying -- it can be costly, as you'll have to take out money based on the government's schedule. Unfortunately, this means that you could get pushed into a higher tax bracket due to withdrawals you don't want to make.
The good news is that RMD rules now apply to fewer accounts than in the past. Specifically, the SECURE 2.0 Act changed the rules so you no longer have to take required minimum distributions from Roth 401(k) or 403(b) plans. This is a welcome change, as under the old rules, Roth IRA accounts weren't subject to RMDs while these workplace plans were.
Now, as long as the original account holder is alive, there's no requirement to take required distributions from Roth accounts, so those who have invested have much more flexibility.
3. The IRS updated its worksheets and guidance
Finally, the last change to know about is that the IRS has updated worksheets and guidance, including the life expectancy tables that help you determine the minimum you must withdraw.
However, some proposed regulations related to the valuation of plans and other complex treatments have been subject to delays or have later effective dates.
As a result, it's important to make sure you really understand the rules for your RMD distributions this year, and know how much you must withdraw so you don't make a mistake that ends up costing you.
If you're aware of these three changes, they can help guide you as you make plans to take your RMDs so you don't get hit with penalties. You can leave as much of your money invested as you hope instead of being forced to make big withdrawals just because the government says so.
