The RMD on $1 million at age 73 is $37,736, found by dividing the prior year December 31 balance by the Uniform Lifetime Table divisor of 26.5, and it is taxed as ordinary income.
Key Takeaways
- The first RMD on a $1 million traditional IRA at age 73 is $37,736, about 3.77% of the balance.
- The age 73 Uniform Lifetime Table divisor is 26.5, and a $2 million IRA produces a first RMD of $75,472.
- The required percentage rises with age, reaching 4.07% at 75, 4.95% at 80, and 6.25% at 85.
- A qualified charitable distribution lets an IRA owner age 70.5 or older send up to $111,000 per person to charity in 2026, counting toward the RMD outside taxable income.
- Missing an RMD triggers a 25% excise tax on the shortfall, dropping to 10% if corrected within a two-year window under SECURE 2.0.
- IRMAA surcharges begin once MAGI exceeds $109,000 single or $218,000 joint, using income from two years prior.
- Under the 2019 SECURE Act, most non-spouse heirs must fully distribute an inherited traditional IRA within 10 years.
RMD on $1 Million at Age 73 by the Numbers
Figures reflect 2026 IRS amounts and the IRS Uniform Lifetime Table. See the sections below for the full age by age schedule.
The RMD on 1 million at age 73 is $37,736 in the first year, calculated by dividing the prior year December 31 balance by the IRS Uniform Lifetime Table divisor of 26.5. That withdrawal is taxed as ordinary income, and for many households it can trigger a bracket jump, more taxable Social Security, and Medicare IRMAA surcharges. Here is the number, what it can cost, and how to reduce it.
A traditional IRA worth $1,000,000 produces a first required minimum distribution of $37,736 at age 73, found by dividing the balance by the 26.5 divisor. A $2,000,000 IRA produces $75,472. The IRS taxes the full amount as ordinary income in the year withdrawn, and the required percentage, near 3.77% at 73, rises every year as the divisor shrinks.
How much is the RMD on $1 million at age 73?
The RMD on 1 million at age 73 is $37,736, found by dividing the prior year December 31 balance by 26.5, the Uniform Lifetime Table divisor for age 73. That equals about 3.77% of the account. A $1.5 million IRA produces $56,604, and a $2 million IRA produces $75,472, each taxed as ordinary income.
| Prior year Dec 31 IRA balance | Age 73 divisor | First RMD at 73 | Percent of balance |
|---|---|---|---|
| $1,000,000 | 26.5 | $37,736 | 3.77% |
| $1,500,000 | 26.5 | $56,604 | 3.77% |
| $2,000,000 | 26.5 | $75,472 | 3.77% |
The figure is a floor, not a ceiling. See the Q3 guide to required minimum distributions in 2026 for the full rules.
How is the RMD calculated?
An RMD is calculated by taking the traditional IRA balance as of December 31 of the prior year, finding the Uniform Lifetime Table divisor for your age (26.5 at 73), then dividing the balance by that divisor. The first RMD can be delayed until April 1 of the year after you turn 73, but doing so forces two taxable RMDs into one calendar year.
- Record the traditional IRA balance on December 31 of the prior year (for a 2026 RMD, use the December 31, 2025 balance).
- Look up your age on the IRS Uniform Lifetime Table. At 73 the distribution period (divisor) is 26.5.
- Divide the balance by the divisor. A $1,000,000 balance divided by 26.5 equals $37,736.
- Withdraw at least that amount by December 31. The first RMD only may be delayed to April 1 of the following year, though that stacks two RMDs into one tax year.
How much does an RMD on $1M to $2M actually cost in tax?
An RMD is taxed as ordinary income at your marginal rate, so a $37,736 RMD adds roughly $8,302 in federal tax at 22% or $9,057 at 24% in 2026. The larger cost is often indirect: the added income can lift the household into a higher bracket, push up to 85% of Social Security into taxable income, and raise Medicare premiums once MAGI clears the IRMAA thresholds.
For a married couple in 2026, the 22% bracket runs to $100,800 of taxable income and the 24% bracket to $403,550, so a first RMD stacked on Social Security and pension income can spill into the next bracket up. Once MAGI exceeds $218,000 joint (or $109,000 single), IRMAA adds a surcharge on the $202.90 Medicare Part B premium plus a Part D surcharge, based on income from two years prior.
The RMD is ordinary income, but by raising total income it can also pull investment income into the reach of the 3.8% net investment income tax, which applies above $250,000 of MAGI for joint filers.
Why a large IRA becomes a tax trap
A large traditional IRA becomes a tax trap because the IRS owns a share of every deferred dollar and sets a mandatory collection schedule. The account compounds tax-deferred, which multiplies the eventual liability, not just the principal. RMDs cannot be skipped, the required percentage rises every year, and each withdrawal is taxed as ordinary income. How withdrawals are sequenced matters here, as compared in retirement withdrawal strategies.
A $1 million pre-tax IRA is not $1 million of spendable money: after federal and state tax, the after-tax value can land closer to $700,000. The contribute-defer-compound playbook builds a large balance but concentrates the tax bill into the years when RMDs, Social Security, and pension income arrive together.
How much does the RMD grow as you age?
The RMD rises every year because the Uniform Lifetime Table divisor shrinks with age, lifting the required percentage from about 3.77% at 73 to 4.07% at 75, 4.95% at 80, and 6.25% at 85. On a flat $1 million balance, that moves the annual RMD from $37,736 at 73 to $62,500 at 85, before any market growth. The years before RMDs begin form the retirement tax window. The tax filing side of each year’s distribution is covered in reporting an RMD on your tax return.
| Age | Divisor | Percent of balance | RMD on $1M | RMD on $2M |
|---|---|---|---|---|
| 73 | 26.5 | 3.77% | $37,736 | $75,472 |
| 75 | 24.6 | 4.07% | $40,650 | $81,301 |
| 80 | 20.2 | 4.95% | $49,505 | $99,010 |
| 85 | 16.0 | 6.25% | $62,500 | $125,000 |
The table holds the balance flat to isolate the divisor effect. A growing portfolio can hold RMD dollars high even as the percentage climbs, so the total tax across a 20 to 30 year retirement far exceeds any single year.
Strategy 1: Shrink the IRA with Roth conversions before RMDs begin
One approach many large-IRA households use is to shrink the traditional balance before age 73 through a Roth conversion, which moves money into a Roth IRA and pays ordinary income tax on the converted amount now. Those dollars no longer count toward future RMDs, and Roth IRAs carry no required distributions during the original owner’s lifetime.
The years between retirement and age 73 often offer temporarily lower brackets. Deciding how much to convert to Roth and finding the break-even point is where much of the planning happens. Funding the tax on a conversion is a distinct question from the RMD math on this page.
Strategy 2: Why bracket-by-bracket conversions can backfire
A common instinct is to convert only enough each year to stay inside the current bracket. For a large IRA, that can backfire: if the account grows faster than the conversions shrink it, the forced RMD at 73 pushes the household into a higher bracket anyway. Some investors instead weigh filling a 24% or 32% bracket now against a forced 35% RMD bracket later, especially for a surviving spouse taxed at single-filer rates. Related beliefs are examined in Roth conversion myths among IRA millionaires. The same bracket math applies to 401(k) millionaires and their tax bill.
Strategy 3: Use QCDs to satisfy your RMD tax-free
A qualified charitable distribution (QCD) lets an IRA owner age 70.5 or older send up to $111,000 per person directly to charity in 2026, and that amount counts toward the RMD while staying out of taxable income. Because the money never appears in adjusted gross income, a QCD can also help hold MAGI below the IRMAA and Social Security taxation thresholds.
A QCD must go directly from the IRA custodian to a qualified charity, and it applies to IRAs, not directly to a 401(k). For charitably inclined retirees, routing the RMD through a QCD satisfies the requirement without adding taxable income.
Plan for lifetime tax outcomes, not just this year
Large RMDs trigger a chain reaction that outlives a single tax return, so many households plan for the lifetime view. When one spouse passes, income that fit the 24% joint bracket can land in the 32% single bracket for the survivor. Under the 2019 SECURE Act, most non-spouse heirs must fully distribute an inherited traditional IRA within 10 years, taxed as ordinary income, while inherited Roth assets follow the same 10-year rule tax-free.
What happens if you miss an RMD?
Missing an RMD triggers a 25% excise tax on the amount that should have been withdrawn, reported on IRS Form 5329. Under SECURE 2.0, that penalty drops to 10% if the shortfall is withdrawn within a two-year correction window, and the IRS may waive it entirely for reasonable cause if the owner takes the missed distribution and files an explanation.
The penalty applies only to the shortfall, not the whole account, but on a $37,736 RMD a full miss is a $9,434 excise tax at 25%, or $3,774 at 10%. An automatic year-end distribution with the custodian is one way to reduce the risk. Beyond the penalty, there are several ways to reduce your required minimum distributions before they begin.
When to start planning around RMDs
A valuable window to plan around RMDs is the stretch between retirement and age 73, often the late 50s through early 60s, when earned income has dropped but Social Security and RMDs have not begun. That runway is where voluntary Roth conversions and QCD timing can do much of the work. Meeting the annual Roth conversion deadline of December 31 matters, because a conversion cannot be undone or applied to a year that has closed.
Work with Q3 Advisors
Q3 Advisors is a registered investment adviser focused on retirement tax planning. This page is educational and is not advice; consult a qualified professional.
Frequently asked questions
How much is the RMD on a $1 million IRA?
The first RMD on a $1 million traditional IRA at age 73 is $37,736, calculated as $1,000,000 divided by the Uniform Lifetime Table divisor of 26.5. That is about 3.77% of the balance, and it rises each year as the divisor shrinks, reaching about $40,650 at 75 and $49,505 at 80.
How do I calculate my RMD at age 73?
Divide your traditional IRA balance as of December 31 of the prior year by 26.5, the IRS Uniform Lifetime Table divisor for age 73. A $1,000,000 balance divided by 26.5 equals $37,736. The first RMD is due by December 31, though the first year only may be delayed to April 1 of the next year.
How much tax will I pay on my RMD?
An RMD is taxed as ordinary income at your marginal rate, so a $37,736 RMD adds roughly $8,302 in federal tax at 22% or $9,057 at 24% in 2026. It can also push up to 85% of Social Security into taxable income and raise Medicare IRMAA surcharges once MAGI clears $218,000 joint or $109,000 single.
What is the RMD divisor (distribution period) for age 73?
The RMD divisor, also called the distribution period, for age 73 is 26.5 under the IRS Uniform Lifetime Table. You divide your prior year December 31 balance by 26.5 to find the required amount. The divisor falls with age (24.6 at 75, 20.2 at 80, 16.0 at 85), which is why the percentage rises each year.
Can a Roth conversion reduce or avoid RMDs?
Yes. Every dollar moved from a traditional IRA to a Roth IRA lowers the traditional balance that future RMDs are calculated against, and Roth IRAs have no required distributions during the original owner’s lifetime. Conversions made between retirement and age 73 are a common tool for shrinking future RMDs. A conversion is taxable in the year made and cannot be applied to an RMD already due.
What happens if I don’t take my required minimum distribution?
Missing an RMD triggers a 25% excise tax on the shortfall, reported on IRS Form 5329. Under SECURE 2.0, the penalty drops to 10% if you withdraw the missed amount within a two-year correction window, and the IRS may waive it for reasonable cause. On a $37,736 RMD, a full miss is a $9,434 penalty at 25% or $3,774 at 10%.
Do RMDs affect my Medicare premiums and Social Security taxes?
Yes. RMDs count toward modified adjusted gross income, which sets IRMAA surcharges on Medicare Part B and Part D once MAGI exceeds $109,000 single or $218,000 joint, using income from two years prior. RMD income can also raise the taxable share of Social Security benefits to as much as 85%. A qualified charitable distribution keeps RMD dollars out of MAGI.
