📅 Last updated: October 27, 2026 | Figures come from IRS.gov (Uniform Lifetime Table and RMD rules) and SSA.gov.
It's late October, and year-end reminders are starting to pile up. One of them matters more than most: your required minimum distribution, or RMD. Miss it, and the IRS can take a big bite.
This guide explains the RMD deadline December 31 in plain English. You'll see who must withdraw, how to calculate the amount, what a mistake costs, and one way to lower the tax bill.
🔑 Key Takeaways for Retirees
- Most people must take their RMD by December 31. Your first one can wait until April 1 of the next year.
- RMDs start at 73 (born 1951 to 1959) or 75 (born 1960 or later).
- Missing one can cost 25% of what you should have taken, or 10% if you fix it within two years.
- A qualified charitable distribution (QCD) can count toward your RMD without adding to your income.
What Happens If You Miss Your RMD Deadline?
If you miss your required minimum distribution, the IRS can charge a 25% excise tax on the amount you should have withdrawn. Correct the mistake within two years and the penalty drops to 10%. Most retirees must take their RMD by December 31 each year.
Think of an RMD as the government collecting tax on money that has been growing tax-deferred for decades. Once you reach a certain age, you must start withdrawing a minimum amount every year.
When do RMDs start?
- Age 73 if you were born from 1951 to 1959.
- Age 75 if you were born in 1960 or later.
What's the deadline? Your first RMD is due by April 1 of the year after you reach your starting age. Every RMD after that is due by December 31.
Which accounts count? Traditional IRAs, 401(k)s, 403(b)s and similar plans. Roth IRAs don't require withdrawals while the original owner is alive.
Still working? If you're past your starting age but still employed, and you don't own 5% or more of the company, you can usually delay RMDs from that employer's plan until you retire. IRAs don't get that exception.
The penalty is real money. On a $20,000 RMD, a 25% penalty is $5,000. That's why late October is the time to check.
How to Calculate Your RMD
The formula is simple. Take your account balance on December 31 of last year. Divide it by the distribution period for your age from the IRS Uniform Lifetime Table.
| Your age | Distribution period | RMD on $500,000 | 25% penalty if missed |
|---|---|---|---|
| 73 | 26.5 | $18,868 | $4,717 |
| 74 | 25.5 | $19,608 | $4,902 |
| 75 | 24.6 | $20,325 | $5,081 |
| 76 | 23.7 | $21,097 | $5,274 |
| 77 | 22.9 | $21,834 | $5,459 |
| 78 | 22.0 | $22,727 | $5,682 |
| 79 | 21.1 | $23,697 | $5,924 |
| 80 | 20.2 | $24,752 | $6,188 |
The number gets smaller as you age, so the share you must withdraw rises every year. At 73, it's about 3.8% of your balance. At 80, it's closer to 5%.
Where do you find your balance? Your December 31 statement from last year shows it, and your provider also reports the value to the IRS on Form 5498. Keep a copy with your tax records. If you inherited an IRA, different rules apply, so check with your custodian.
A different table applies if your spouse is your only beneficiary and is more than 10 years younger. If you own several IRAs, calculate each RMD separately. You can then take the total from any one of them. A 401(k) doesn't combine that way, so take each plan's RMD from that plan.
Hypothetical Example: Harold From Florida
An RMD doesn't just add income. It can also pull more of your Social Security into the tax column. Here's how that looks. Harold is fictional, and the math covers federal income tax only.
🧮 Hypothetical Example (Not a Real Person)
Harold, 74, is a widower in Florida and files as single.
- Income: Social Security $24,000, pension $15,000
- IRA balance on December 31 last year: $600,000
- His RMD: $600,000 ÷ 25.5 = $23,529
- Taxable Social Security before the RMD: about $1,000
- Taxable Social Security after the RMD: about $18,550
- Adjusted gross income: about $57,079
- Deductions at 65+, including the $6,000 senior deduction: $24,150
- Taxable income: about $32,929
Result: Federal tax of about $3,704. Before the RMD, he owed nothing.
Harold's RMD added $23,529 of income. It also pulled another $17,550 of his Social Security into taxable income. That's the hidden double hit.
He can't skip the RMD to avoid it. A 25% penalty on $23,529 would be about $5,882, far more than the tax he'd owe. So the goal isn't to avoid the withdrawal. It's to plan around it.
The rules behind that second hit are in our guide to the $6,000 senior deduction and Social Security taxes.
How a QCD Can Lower the Tax Hit
A qualified charitable distribution (QCD) sends money straight from your IRA to a charity. It counts toward your RMD, but it isn't added to your adjusted gross income. That's the key difference.
Suppose Harold gives $10,000 to his church this way. His taxable IRA withdrawal falls to $13,529. His taxable Social Security drops to about $10,050. His adjusted gross income falls to about $38,579, and his federal tax falls to about $1,484.
That's roughly $2,220 less tax for the same gift. Lower income can also help you avoid higher Medicare premiums (IRMAA), which we covered in 5 Surprising Things That Can Shrink Your Social Security Check.
The QCD rules are strict:
- You must be at least 70½ when you make the transfer.
- The limit in 2026 is $111,000 per person.
- The money must go directly from your IRA custodian to a qualified charity. If the check is made out to you, it doesn't count.
- Donor-advised funds don't qualify.
- It must be completed by December 31 to count for this year.
A QCD isn't a tax deduction. You don't need one, because the money never becomes income. Couples can each give up to $111,000 from their own IRAs.
Your Year-End Checklist
Turning 73 This Year?
You can wait until April 1, 2027 for your first RMD. But then you'd take two RMDs in 2027, which can push you into a higher bracket. Many retirees take the first one this year instead.
💡 Essential Retirement Tip: Don't wait for the last week of December. Custodians get busy at year-end, and a QCD takes extra time to process. Call your account provider by early December.
Three Common Mistakes
- Forgetting an old 401(k). Each workplace plan needs its own RMD.
- Withdrawing too little. The penalty applies to the shortfall, not just to a missed withdrawal.
- Waiting until the last week. A rushed transfer can slip into January.
Your 3-Step Checklist
☑️ Step 1: Find your balance on December 31 of last year for every traditional IRA and 401(k). Your year-end statements show it.
☑️ Step 2: Divide each balance by your distribution period. Many providers already show your RMD on your account page, so compare their number to yours.
☑️ Step 3: Take the withdrawal, or make a QCD, before December 31. Ask about tax withholding so April doesn't bring a surprise.
Frequently Asked Questions
What is the RMD age in 2026?
It's 73 if you were born from 1951 to 1959, and 75 if you were born in 1960 or later. Your first RMD can wait until April 1 of the following year.
What if I miss my RMD?
The IRS can charge a 25% excise tax on the amount you didn't withdraw. If you correct it within two years, the penalty drops to 10%. You can also ask the IRS to waive it for a reasonable error by filing Form 5329 with a short explanation.
Do Roth IRAs have RMDs?
No. Roth IRAs don't require withdrawals while the original owner is alive. Traditional IRAs and most workplace plans do.
Official Sources
About the Author: Written by Rajitha, an independent writer who researches Social Security and Medicare news using SSA and CMS sources.
Disclaimer: The information on WealthWise Living is for educational purposes only and isn't financial, tax, or legal advice. Examples are hypothetical and cover federal income tax only. Always check your personal situation with a tax professional, a Certified Financial Planner (CFP), IRS.gov, or SSA.gov.