For 2026, the required minimum distribution (RMD) age remains 73, and a retiree taking a first RMD at 73 must distribute a minimum of about 3.77% of the prior-year-end balance, a floor that rises every year to 4.07% at 75, 6.25% at 85, and 11.24% at 95, because the divisor is fixed by the IRS Uniform Lifetime Table (Source: IRS Publication 590-B, for use in preparing 2025 returns, Appendix B, Table III; withdrawal percentages derived as 100 divided by the IRS divisor).
By the numbers
- RMD applicable age in 2026: 73, for individuals who reach age 72 after December 31, 2022 (Source: IRS Pub 590-B, 2025).
- Age-73 Uniform Lifetime Table divisor: 26.5, implying a first-year withdrawal floor of about 3.77% (Source: IRS Pub 590-B, 2025, Table III; percentage derived).
- Excise tax on a missed RMD: 25% of the shortfall, reduced to 10% if timely corrected (Source: IRS Pub 590-B, 2025; 26 U.S.C. 4974).
- Prior excise-tax rate before SECURE 2.0: 50% (Source: CRS In Focus IF12750).
- US IRA taxpayers at year-end 2023: 71.1 million holding about $14.58 trillion in fair market value (Source: IRS SOI, Tax Year 2023, Table 1).
- IRA fair market value held by taxpayers aged 70 and over (TY2023): about $5.70 trillion (Source: IRS SOI, Tax Year 2023, Table 4).
- Total US IRA assets at December 31, 2025: $19.2 trillion (Source: ICI Quarterly Retirement Market Data, Q4 2025).
- RMD age scheduled to rise to 75 in 2033 for those turning 73 after December 31, 2032 (Source: SECURE 2.0 Act, P.L. 117-328, via CRS IF12750).
What an RMD is and who it affects in 2026
A required minimum distribution is the minimum amount that owners of most tax-deferred retirement accounts must withdraw each year once they reach the applicable age. The rule exists because Traditional IRA and pre-tax employer-plan balances grow without current taxation; the RMD regime forces those balances to begin distributing, and for pre-tax accounts each distribution is recognized as ordinary taxable income.
For 2026, the applicable age is 73. IRS Publication 590-B (2025) states verbatim: “If you reach age 72 after December 31, 2022, you must begin receiving required minimum distributions by April 1 of the year following the year you reach the age 73” (Source: IRS Pub 590-B, 2025). The required beginning date (RBD) for an IRA is April 1 of the year following the calendar year in which the owner reaches age 73. For employer plans, the RBD is April 1 following the later of the year the participant turns 73 or the year of retirement. Every RMD after the first is due by December 31 of that year (Source: IRS Retirement Topics, Required Minimum Distributions).
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The scale of the affected population is large. According to the IRS Statistics of Income (SOI) study for Tax Year 2023, about 71.1 million taxpayers held at least one IRA at year-end, with aggregate fair market value of roughly $14.58 trillion (Source: IRS SOI, Tax Year 2023, Table 1). Taxpayers aged 70 and over, the group closest to and past the RMD onset age, held about $5.70 trillion in IRA value and took about $292 billion in distributions that year (Source: IRS SOI, Tax Year 2023, Table 4). Note that SOI reports total Form 1099-R withdrawals, not a discrete RMD line item, so these distributions include but are not limited to RMDs.
The RMD age: history and the statutory path to 75
The applicable age has moved twice in recent years and is scheduled to move again. The table below summarizes the statutory history as documented by the Congressional Research Service.
| Applicable age | Governing law | Effective |
|---|---|---|
| 70 and one-half | Long-standing pre-2020 requirement (CRS characterizes the origin as dating to the 1960s) | Through 2019 |
| 72 | SECURE Act of 2019, P.L. 116-94 | For individuals who reached age 70 and one-half after December 31, 2019 |
| 73 | SECURE 2.0 Act of 2022, P.L. 117-328 | For individuals who turn 72 after December 31, 2022 (2023 onward) |
| 75 | SECURE 2.0 Act of 2022, P.L. 117-328 | For individuals who turn 73 after December 31, 2032 (2033 onward) |
The SECURE Act of 2019 (Section 114, enacted December 20, 2019, as Division O of the Further Consolidated Appropriations Act, 2020) raised the age from 70 and one-half to 72 (Source: CRS In Focus IF12750). The SECURE 2.0 Act of 2022 (enacted December 29, 2022, as Division T of the Consolidated Appropriations Act, 2023) raised it to 73 for individuals who turn 72 after December 31, 2022, and provides that it rises to 75 for individuals who turn 73 after December 31, 2032 (Source: CRS In Focus IF12750). For any retiree taking RMDs in 2026, the age is 73.
The 2026 Uniform Lifetime Table (IRS Table III)
The dollar RMD is computed by dividing the prior-year-end account balance by an “applicable denominator” (the divisor) that the IRS lists by age. Most owners use the Uniform Lifetime Table (Table III in Appendix B of Pub 590-B). Its header states it is “For Use by: Unmarried Owners; Married Owners Whose Spouses Aren’t More Than 10 Years Younger; and Married Owners Whose Spouses Aren’t the Sole Beneficiaries of Their IRAs” (Source: IRS Pub 590-B, 2025). Owners whose sole beneficiary is a spouse more than 10 years younger use the Joint Life and Last Survivor Table instead, which produces larger divisors and therefore smaller required percentages.
These divisors are fixed by Treasury final regulations T.D. 9930 (85 FR 72472, November 12, 2020), applicable to distribution calendar years beginning on or after January 1, 2022, and unchanged for 2026. Pub 590-B (2025) states verbatim that “your applicable denominator for 2026 is listed in the table next to your age as of your birthday in 2026” (Source: IRS Pub 590-B, 2025). The full verified table follows.
| Age | Divisor | Age | Divisor | Age | Divisor |
|---|---|---|---|---|---|
| 72 | 27.4 | 89 | 12.9 | 106 | 4.3 |
| 73 | 26.5 | 90 | 12.2 | 107 | 4.1 |
| 74 | 25.5 | 91 | 11.5 | 108 | 3.9 |
| 75 | 24.6 | 92 | 10.8 | 109 | 3.7 |
| 76 | 23.7 | 93 | 10.1 | 110 | 3.5 |
| 77 | 22.9 | 94 | 9.5 | 111 | 3.4 |
| 78 | 22.0 | 95 | 8.9 | 112 | 3.3 |
| 79 | 21.1 | 96 | 8.4 | 113 | 3.1 |
| 80 | 20.2 | 97 | 7.8 | 114 | 3.0 |
| 81 | 19.4 | 98 | 7.3 | 115 | 2.9 |
| 82 | 18.5 | 99 | 6.8 | 116 | 2.8 |
| 83 | 17.7 | 100 | 6.4 | 117 | 2.7 |
| 84 | 16.8 | 101 | 6.0 | 118 | 2.5 |
| 85 | 16.0 | 102 | 5.6 | 119 | 2.3 |
| 86 | 15.2 | 103 | 5.2 | 120 and over | 2.0 |
| 87 | 14.4 | 104 | 4.9 | ||
| 88 | 13.7 | 105 | 4.6 |
Source: IRS Publication 590-B (2025), Appendix B, Table III (Uniform Lifetime). Divisor set fixed by Treasury final regulations T.D. 9930.
Worked example from the IRS
Pub 590-B (2025) illustrates the mechanic directly. A 75-year-old with a $100,000 prior-year-end balance has a 2026 RMD of $4,065, computed as $100,000 divided by the age-75 divisor of 24.6 (Source: IRS Pub 590-B, 2025). That equals 4.07% of the balance. A separate worked example in the same publication addresses a taxpayer whose spouse is six years younger and who turns 75 in 2026, confirming the age-75 divisor of 24.6 applies for 2026 distribution years (Source: IRS Pub 590-B, 2025).
The RMD Tax-Drag Curve: implied required withdrawal percentages
Because the divisor shrinks with age, the implied withdrawal floor, W = 100 divided by the divisor, rises every year. The Q3 Advisors RMD Tax-Drag Curve tracks this escalation. The percentage is a derived figure computed by Q3 Advisors from the verified IRS divisors; the IRS publishes the divisor, not the percentage.
| Age | Divisor | Implied withdrawal % | Year-over-year rise (pts) |
|---|---|---|---|
| 73 | 26.5 | 3.77% | onset |
| 74 | 25.5 | 3.92% | +0.15 |
| 75 | 24.6 | 4.07% | +0.14 |
| 76 | 23.7 | 4.22% | +0.15 |
| 77 | 22.9 | 4.37% | +0.14 |
| 78 | 22.0 | 4.55% | +0.17 |
| 79 | 21.1 | 4.74% | +0.19 |
| 80 | 20.2 | 4.95% | +0.21 |
| 81 | 19.4 | 5.15% | +0.21 |
| 82 | 18.5 | 5.41% | +0.25 |
| 83 | 17.7 | 5.65% | +0.24 |
| 84 | 16.8 | 5.95% | +0.30 |
| 85 | 16.0 | 6.25% | +0.30 |
| 86 | 15.2 | 6.58% | +0.33 |
| 87 | 14.4 | 6.94% | +0.37 |
| 88 | 13.7 | 7.30% | +0.36 |
| 89 | 12.9 | 7.75% | +0.45 |
| 90 | 12.2 | 8.20% | +0.44 |
| 91 | 11.5 | 8.70% | +0.50 |
| 92 | 10.8 | 9.26% | +0.56 |
| 93 | 10.1 | 9.90% | +0.64 |
| 94 | 9.5 | 10.53% | +0.63 |
| 95 | 8.9 | 11.24% | +0.71 |
Divisors: IRS Pub 590-B (2025), Table III. Implied withdrawal percentages and year-over-year deltas derived by Q3 Advisors.
The curve is convex. The forced-withdrawal floor rises roughly 0.15 point per year in the mid-70s, about 0.30 point per year in the mid-80s, and 0.6 to 0.7 point per year by the mid-90s. Threshold crossings, derived from the IRS divisors, occur at recognizable milestones: the floor crosses 4% at age 75, 5% at age 81, 6% at age 85, and roughly 10% at age 94. From onset at age 73 (3.77%) to age 95 (11.24%), the floor nearly triples over 22 years.
The extended tail is steeper still. At age 100 the divisor of 6.4 implies a 15.63% floor; at age 105, the divisor of 4.6 implies 21.74%; at age 110, the divisor of 3.5 implies 28.57%; and at age 120 and over, the terminal divisor of 2.0 implies a 50.00% floor (Source: divisors from IRS Pub 590-B, 2025; percentages derived).
This escalation is one reason the sequencing of withdrawals earlier in retirement is a common topic in retirement-tax analysis. Q3 Advisors maintains related educational material on the retirement tax window and on Roth conversion planning. RMD income can also interact with other rules that use income thresholds, including Medicare IRMAA surcharges and the taxation of Social Security benefits.
The penalty for a missed RMD: 25%, or 10% if corrected
If an owner fails to take the full RMD, an excise tax applies to the shortfall. Pub 590-B (2025) states verbatim that “you may have to pay a 25% excise tax for that year on the amount not distributed as required” (Source: IRS Pub 590-B, 2025). The statutory text at 26 U.S.C. 4974(a) describes “a tax equal to 25 percent of the amount by which such minimum required distribution exceeds the actual amount distributed” (Source: Cornell LII, 26 U.S.C. 4974).
The rate is reduced to 10% if the shortfall is corrected during the “correction window.” Pub 590-B (2025) states that the taxpayer “may be subject to a reduced additional tax rate of 10% of the amount not distributed, if, during the correction window,” the taxpayer takes a distribution of the excess accumulation and submits a tax return reflecting the additional tax (Source: IRS Pub 590-B, 2025). The correction window ends on the earliest of: the date a notice of deficiency is mailed, the date the tax is assessed, or the last day of the second taxable year that begins after the end of the taxable year in which the tax was imposed (Source: 26 U.S.C. 4974(e)(3); IRS Pub 590-B, 2025). The IRS FAQ shorthand describes this as correcting “within two years,” but the window can be shorter if the IRS acts first.
These rates were changed by the SECURE 2.0 Act. The prior excise-tax rate was 50%; SECURE 2.0 reduced it to 25%, and to 10% if the RMD is corrected in a timely manner, effective for taxable years beginning after December 29, 2022 (Source: CRS In Focus IF12750). The shortfall tax is reported on Form 5329, Part IX. The penalty may be waived if the shortfall was due to reasonable error and reasonable steps are being taken to remedy it; the taxpayer files Form 5329 with a letter of explanation (Source: IRS Retirement Plan and IRA Required Minimum Distributions FAQs).
Roth accounts and RMDs
Roth accounts are treated differently. Pub 590-B (2025) states verbatim: “If you are the original owner of a Roth IRA, you don’t have to take distributions regardless of your age” (Source: IRS Pub 590-B, 2025). Beginning with taxable years after December 31, 2023, designated Roth accounts inside employer plans (Roth 401(k), Roth 403(b), and Roth 457(b)) are also no longer subject to lifetime RMDs while the owner is alive, aligning them with Roth IRAs. This change was made by SECURE 2.0 Act section 325, which added IRC section 402A(d)(5) (Source: Federal Register, “Required Minimum Distributions” final regulations, FR Doc. 2024-14542, published July 19, 2024).
Two caveats apply. First, a transition exception meant a 2023 RMD from a designated Roth account, deferrable to the April 1, 2024 required beginning date, was still required (Source: Federal Register 2024-14542). Second, the post-death rule is unchanged: RMD rules still apply to beneficiaries of Roth IRAs and designated Roth accounts (Source: Federal Register 2024-14542; IRS RMD FAQs). The final RMD regulations (T.D. 10001; FR Doc. 2024-14542) generally apply for determining RMDs for calendar years beginning on or after January 1, 2025 (Source: Federal Register 2024-14542).
Aggregate IRA data and the RMD-affected population
The IRS SOI study provides tax-return-matched aggregates. The table below shows the RMD-relevant age cohorts for Tax Year 2023.
| Age cohort (TY2023) | Taxpayers with IRAs | Year-end FMV | Withdrawals |
|---|---|---|---|
| 65 under 70 | 7,921,025 | $2.93 trillion | $91.1 billion |
| 70 under 75 | 6,352,437 | $2.50 trillion | $95.2 billion |
| 75 under 80 | 4,577,722 | $1.71 trillion | $89.8 billion |
| 80 and over | 4,995,458 | $1.50 trillion | $107.1 billion |
Source: IRS SOI, “Accumulation and Distribution of Individual Retirement Arrangements,” Tax Year 2023, Table 4. Withdrawals are total Form 1099-R distributions, not RMD amounts specifically.
By IRA type at year-end 2023, Traditional IRA plans held about $12.10 trillion (held by 53,679,821 taxpayers), Roth IRA plans about $1.68 trillion (29,301,806 taxpayers), SEP plans about $0.61 trillion, and SIMPLE plans about $0.19 trillion (Source: IRS SOI, Tax Year 2023, Table 1). Total IRA distributions that year were about $515.2 billion, taken by 23,623,721 taxpayers (Source: IRS SOI, Tax Year 2023, Table 1).
Industry aggregates from the Investment Company Institute (ICI) show a larger, more current market-based figure. Total US IRA assets were $19.2 trillion at December 31, 2025, about 39% of the $49.1 trillion in total US retirement assets, up from roughly 24% two decades earlier (Source: ICI Quarterly Retirement Market Data, Q4 2025). At March 31, 2026, ICI reported total US retirement assets of $47.6 trillion and IRA assets of $18.2 trillion, with retirement assets equal to 34% of all US household financial assets (Source: ICI Quarterly Retirement Market Data, Q1 2026). The gap between the SOI figure (about $14.58 trillion at year-end 2023) and the ICI figure reflects the roughly two-year timing difference, 2024 to 2025 market gains, and differing methodology (tax-form matched sample versus financial-institution asset survey).
ICI household survey data indicates that 44% of US households owned IRAs as of mid-2025: 33% held a Traditional IRA, 28% a Roth IRA, and 4% an employer-sponsored IRA (Source: ICI, “The Role of IRAs in US Households’ Saving for Retirement, 2025”).
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Q3 Advisors is a registered investment adviser focused on retirement tax planning. This article is educational and is not advice; for guidance on your own circumstances, consult a qualified tax or financial professional.
Frequently asked questions
What is the RMD age in 2026?
The applicable age is 73 for individuals who reach age 72 after December 31, 2022 (Source: IRS Pub 590-B, 2025).
When is the first RMD due?
The required beginning date for an IRA is April 1 of the year following the calendar year in which the owner reaches age 73 (Source: IRS Retirement Topics, RMDs).
When are subsequent RMDs due?
Every RMD after the first is due by December 31 of that year (Source: IRS Retirement Topics, RMDs).
How is the RMD amount calculated?
The RMD equals the prior-year-end account balance divided by the applicable denominator (divisor) listed for the owner’s age in the IRS Uniform Lifetime Table (Source: IRS Pub 590-B, 2025).
What divisor applies at age 73?
The age-73 divisor is 26.5, implying a first-year withdrawal floor of about 3.77% (Source: IRS Pub 590-B, 2025; percentage derived by Q3 Advisors).
What is the RMD on a $100,000 balance at age 75?
The IRS worked example shows a 2026 RMD of $4,065, computed as $100,000 divided by the age-75 divisor of 24.6 (Source: IRS Pub 590-B, 2025).
Which table do most owners use?
Most owners use the Uniform Lifetime Table (Table III). It applies to unmarried owners, owners whose spouse is not more than 10 years younger, and owners whose spouse is not their sole beneficiary (Source: IRS Pub 590-B, 2025).
What if my spouse is more than 10 years younger?
Owners whose sole beneficiary is a spouse more than 10 years younger use the Joint Life and Last Survivor Table, which produces larger divisors and lower required percentages (Source: IRS Pub 590-B, 2025).
What is the penalty for missing an RMD?
The excise tax is 25% of the shortfall (Source: IRS Pub 590-B, 2025; 26 U.S.C. 4974).
Can the penalty be reduced?
Yes. The rate is reduced to 10% if the shortfall is corrected during the correction window (Source: IRS Pub 590-B, 2025).
What is the correction window?
It ends on the earliest of: the date a notice of deficiency is mailed, the date the tax is assessed, or the last day of the second taxable year that begins after the end of the taxable year in which the tax was imposed (Source: 26 U.S.C. 4974(e)(3)).
What was the penalty before SECURE 2.0?
The prior rate was 50%, reduced to 25% (and 10% if timely corrected) effective for taxable years beginning after December 29, 2022 (Source: CRS In Focus IF12750).
What form reports a missed RMD?
Form 5329, Part IX, is used to report the shortfall excise tax (Source: IRS RMD FAQs).
Can the penalty be waived?
It may be waived if the shortfall was due to reasonable error and reasonable steps are being taken to remedy it; file Form 5329 with a letter of explanation (Source: IRS RMD FAQs).
Do Roth IRA owners take RMDs?
No. Original owners of a Roth IRA do not have to take distributions regardless of age (Source: IRS Pub 590-B, 2025).
Do Roth 401(k) accounts have lifetime RMDs?
No, beginning with taxable years after December 31, 2023. Designated Roth accounts in employer plans are no longer subject to lifetime RMDs while the owner is alive (Source: Federal Register 2024-14542; SECURE 2.0 section 325).
Do beneficiaries of Roth accounts face RMDs?
Yes. Post-death RMD rules still apply to beneficiaries of Roth IRAs and designated Roth accounts (Source: Federal Register 2024-14542).
Will the RMD age change again?
Yes. It rises to 75 for individuals who turn 73 after December 31, 2032 (Source: SECURE 2.0 Act, P.L. 117-328, via CRS IF12750).
What withdrawal percentage applies at age 85?
The age-85 divisor is 16.0, implying a 6.25% withdrawal floor (Source: IRS Pub 590-B, 2025; percentage derived).
What is the highest divisor-implied percentage?
At age 120 and over, the terminal divisor is 2.0, implying a 50.00% floor (Source: IRS Pub 590-B, 2025; percentage derived).
How many US taxpayers held IRAs?
About 71.1 million taxpayers held at least one IRA at year-end for Tax Year 2023 (Source: IRS SOI, Tax Year 2023, Table 1).
How large is the US IRA market?
Total US IRA assets were $19.2 trillion at December 31, 2025 (Source: ICI Quarterly Retirement Market Data, Q4 2025).
Are RMDs taxable?
For pre-tax Traditional IRA and pre-tax employer-plan balances, distributions are recognized as ordinary taxable income; Roth accounts are treated separately as described above (Source: IRS Pub 590-B, 2025). This is general educational information, not tax advice.
Do the divisors change for 2026?
No. The divisors are fixed by Treasury final regulations T.D. 9930, applicable to distribution years beginning on or after January 1, 2022, and unchanged for 2026 (Source: IRS Pub 590-B, 2025).
Sources
IRS Publication 590-B, “Distributions from Individual Retirement Arrangements (IRAs),” for use in preparing 2025 returns, Appendix B, Table III (https://www.irs.gov/pub/irs-pdf/p590b.pdf). IRS Retirement Topics, Required Minimum Distributions (https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-required-minimum-distributions-rmds). IRS Retirement Plan and IRA Required Minimum Distributions FAQs (https://www.irs.gov/retirement-plans/retirement-plan-and-ira-required-minimum-distributions-faqs). Congressional Research Service, In Focus IF12750 (https://www.congress.gov/crs-product/IF12750). 26 U.S.C. 4974, Cornell Legal Information Institute (https://www.law.cornell.edu/uscode/text/26/4974). Federal Register, “Required Minimum Distributions” final regulations, FR Doc. 2024-14542, published July 19, 2024 (https://www.federalregister.gov/documents/2024/07/19/2024-14542/required-minimum-distributions). Treasury final regulations T.D. 9930 (85 FR 72472). IRS Instructions for Form 5329 (2025) (https://www.irs.gov/instructions/i5329). IRS Statistics of Income, “Accumulation and Distribution of Individual Retirement Arrangements,” Tax Year 2023, Tables 1 and 4 (https://www.irs.gov/statistics/soi-tax-stats-accumulation-and-distribution-of-individual-retirement-arrangements). Investment Company Institute, Quarterly Retirement Market Data, Q4 2025 (https://www.ici.org/statistical-report/ret_25_q4) and Q1 2026 (https://www.ici.org/statistical-report/ret_26_q1). Investment Company Institute, “The Role of IRAs in US Households’ Saving for Retirement, 2025” (https://www.ici.org/system/files/2026-06/per32-07.pdf). Withdrawal percentages are derived by Q3 Advisors as 100 divided by the IRS divisor; the IRS publishes the divisor, not the percentage.
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Disclaimer
This material is provided by Q3 Advisors, a registered investment adviser, for informational and educational purposes only. It is not investment, legal, or tax advice, nor a recommendation or solicitation to buy or sell any security or to adopt any strategy. Information is believed to be from reliable sources as of the dates cited, but its accuracy is not guaranteed and figures are subject to change. Past performance does not guarantee future results, and the value of investments can go down as well as up. Registration with the SEC or a state does not imply a certain level of skill or training. See Q3 Advisors’ Form ADV Part 2A for information on services, fees, and conflicts of interest. Readers should consult their own qualified tax, legal, or financial advisor before making any decisions.
