A required minimum distribution (RMD) is the amount the IRS makes you withdraw each year from tax-deferred retirement accounts once you reach RMD age. This guide shows you how to calculate it for 2026.
How does an RMD calculator work?
An RMD calculator divides your retirement account balance as of December 31 of the prior year by a life expectancy factor from the IRS Uniform Lifetime Table. For example, a $500,000 balance at age 73 (factor 26.5) yields an RMD of about $18,868. The calculation repeats every year using your new year-end balance and a new, smaller factor as you age, which is why RMDs grow over time. You must calculate an RMD separately for each traditional IRA and most employer plans, though IRA amounts can be totaled and withdrawn from any one IRA. Workplace 401(k) RMDs generally must be taken from each plan individually.
At what age do RMDs start in 2026?
Under the SECURE 2.0 Act, your RMD starting age depends on your birth year. If you were born between 1951 and 1959, RMDs begin the year you turn 73. If you were born in 1960 or later, RMDs begin at age 75. The starting age officially moves to 75 on January 1, 2033. Your first RMD can be delayed until April 1 of the year after you reach RMD age, but doing so forces two distributions in one tax year, which can push you into a higher bracket. Every RMD after the first is due by December 31. Call 1-800-MEDIGAP if you want help understanding how withdrawals affect your Medicare premiums.
Which accounts require RMDs?
RMDs apply to most tax-deferred retirement accounts: traditional IRAs, SEP IRAs, SIMPLE IRAs, 401(k)s, 403(b)s, 457(b) plans, and the federal Thrift Savings Plan. Roth IRAs never require RMDs during the original owner's lifetime. As of January 1, 2024, designated Roth accounts inside 401(k) and 403(b) plans also no longer require lifetime RMDs. Inherited accounts have their own rules, including a 10-year payout window for many non-spouse beneficiaries. Because the rules differ by account type, confirm which of your accounts are subject to RMDs before year-end to avoid a missed-distribution penalty.
What happens if you skip an RMD?
Missing an RMD is one of the most expensive mistakes in retirement. The IRS imposes a 25% excise tax on the amount you failed to withdraw. The good news from SECURE 2.0: that penalty drops to 10% if you correct the shortfall within a two-year correction window and file IRS Form 5329. The IRS may also waive the penalty entirely for a first-time, reasonable-cause error if you take the missed distribution promptly and attach a statement requesting relief. The simplest protection is a calendar reminder each fall and a confirmed withdrawal before December 31.
How RMDs affect Medicare and taxes
RMDs count as ordinary income, which raises your modified adjusted gross income (MAGI). A higher MAGI can trigger the Medicare Income-Related Monthly Adjustment Amount (IRMAA), increasing your Part B and Part D premiums two years later. Strategies like qualified charitable distributions (QCDs) and Roth conversions before RMD age can reduce future taxable distributions. Because Medicare and retirement income are tightly linked, planning your withdrawals around your coverage matters. The licensed team at 1-800-MEDIGAP (dial 1-800-633-4427) can explain how your income affects your Medicare costs so you withdraw with confidence.