3 Required Minimum Distribution (RMD) Rule Changes Retirees Must Know in 2026

Core Insights - Retirement accounts such as traditional IRAs and 401(k) plans allow for pre-tax investments, reducing current taxable income, but withdrawals are subject to federal income tax in the future [2] Group 1: Required Minimum Distributions (RMDs) - RMDs for account holders born between 1951 and 1959 begin at age 73, following changes from the Secure 1.0 Act and Secure 2.0 Act [5][7] - The Secure 2.0 Act eliminated RMDs for Roth 401(k) and Roth 403(b) plans while the original account holder is alive, but beneficiaries must still take RMDs [7] - RMDs must generally be completed by December 31 each year, with penalties for late withdrawals potentially reaching up to 25%, which can be reduced to 10% [7][8] Group 2: RMD Rules and Examples - RMDs are mandatory for traditional 401(k) plans and traditional IRAs starting at the specified minimum age, even if the account holder is still employed [8] - The first RMD can be delayed until April 1 of the following year, but subsequent withdrawals must be completed by December 31 of the applicable year [9]