Key Points
-
You don’t have to take RMDs from Roth accounts or your current 401(k) if you’re still working and own less than 5% of the company.
-
You can take all your IRA RMDs from a single IRA if you choose.
-
A qualified charitable distribution (QCD) fulfills your RMD requirement without raising your tax bill.
-
Seniors who will be 74 or older by the end of the year only have a few weeks left to take their 2026 required minimum distributions (RMDs). Those who will be 73 by the end of the year have until April 1, 2027, to complete theirs, but it doesn’t hurt to get them out of the way earlier than that.
RMDs can sound complicated, especially if you haven’t taken them before, but they’re actually fairly straightforward. Here’s what you need to do.
Missed AI’s “Act 1”? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn’t buy Nvidia in 2005. But according to our analysts, we’re only at the end of “Act 1″—the R&D phase. “Act 2” is the global rollout. Continue »
Image source: Getty Images.
Figure out which accounts you must take RMDs from
You’re legally required to take RMDs from all tax-deferred retirement accounts each year once you’re 73 or older. You do not have to take these withdrawals from Roth accounts. You’ve already paid taxes on those funds in the year you made your contributions, so the government has no incentive to force you to withdraw the money now.
You can also skip RMDs from your current 401(k) if you’re still working and own less than 5% of the company. You don’t have to take RMDs from this account until you retire.
Make a note of all the retirement accounts you must take RMDs from and the balances for each as of Dec. 31, 2025. Check with your plan administrator if you’re not sure what this was.
How to calculate your RMDs
Calculate your RMDs by taking your account balance as of Dec. 31, 2025, and dividing it by the applicable denominator for your age as of Dec. 31, 2026, from the IRS Uniform Lifetime Table. The result is the amount you must withdraw from that account this year. You are free to withdraw more if you choose. This amount will usually get added to your 2026 tax bill.
If you have multiple IRAs, you don’t need to take an individual withdrawal from each one. Say you have one IRA with a $5,000 RMD and another with a $10,000 RMD. You can take $7,500 from each, $15,000 from one, or any other combination you’d like as long as the total is at least $15,000. This rule does not apply to 401(k)s.
How to take your 2026 RMDs
Contact your plan administrator to begin taking your RMDs. It’s best not to wait until right before the deadline to do this, as the process may take a few weeks. If you have any questions, reach out to your plan administrator before moving money around.
If you’re concerned about the effect that your RMDs will have on your 2026 tax bill, consider doing a qualified charitable distribution (QCD) instead. This is where you donate your RMD to a charity rather than keeping it for yourself. You don’t get to keep the money, but you fulfill your RMD requirement without raising your tax bill by a penny. Just provide your plan administrator with the name of the organization you’d like to donate to, and they can give you the next steps.
The $23,760 Social Security bonus most retirees completely overlook
If you’re like most Americans, you’re a few years (or more) behind on your retirement savings. But a handful of little-known “Social Security secrets” could help ensure a boost in your retirement income.
One easy trick could pay you as much as $23,760 more… each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we’re all after. Join Stock Advisor to learn more about these strategies.
View the “Social Security secrets” »
The Motley Fool has a disclosure policy.
