RMD Tax-Bomb Threshold 2026: The $1.98M Trigger

A single retiree’s first-year required minimum distribution does not push the top dollar of income into the 22% federal bracket until the pre-tax account balance exceeds roughly $1.98 million (tax year 2026, U.S. federal), a figure that sits about 21 times above the $95,425 median balance of a U.S. Vanguard-recordkept saver age 65 or older (Vanguard, How America Saves 2025, year-end 2024 U.S. plan-year data). The gap between that threshold and the typical account is the central fact this report measures.

Q3 Advisors Research | Last updated July 2026 | Methodology and sources below

Executive summary

Key findings

1. The single-filer RMD Tax-Bomb Threshold (first-year RMD reaches the 22% bracket) is about $1.98 million at age 73 and $1.83 million at age 75 (2026 federal brackets, U.S.; computed from IRS Pub 590-B Table III divisors, IRS Rev. Proc. 2025-32, and the OBBBA senior deduction under P.L. 119-21, sec. 70103).
2. The married-filing-jointly threshold is about $3.93 million at age 73 and $3.65 million at age 75 (2026, U.S.; same sources, with the senior deduction doubled for two spouses age 65-plus).
3. The first-year RMD alone does not cross the tier-1 IRMAA Medicare surcharge cliff ($109,000 single MAGI in 2026) until the balance exceeds about $2.89 million for a single filer and $5.78 million for a couple (CMS, 2026; IRS Pub 590-B Table III).
4. At the $95,425 median U.S. 65-plus balance, the age-73 RMD is about $3,601 and the federal income tax as sole income is $0 (Vanguard, How America Saves 2025, year-end 2024 U.S. data; 2026 standard deduction $18,150, IRS Rev. Proc. 2025-32).
5. At the $299,442 average U.S. 65-plus balance, the age-73 RMD is about $11,300 and still generates $0 federal tax as sole income because it sits below the $18,150 single deduction floor (Vanguard, How America Saves 2025, year-end 2024 U.S. data; IRS, 2026).
6. On a $1,000,000 balance the age-73 RMD is $37,736 and generates about $1,382 in federal tax as sole income, an effective federal rate on the RMD of 3.7% (IRS Pub 590-B; IRS Rev. Proc. 2025-32; OBBBA senior deduction, P.L. 119-21, sec. 70103).
7. On a $1,200,000 balance the age-73 RMD is $45,283 and generates about $2,288 in federal tax (12% marginal, 5.1% effective, single, sole income; 2026, U.S.).
8. On a $2,500,000 balance the age-73 RMD is $94,340 and generates about $10,409 in federal tax (22% marginal, 11.0% effective, single, sole income; 2026, U.S.).
9. The required withdrawal percentage rises 65.6% between age 73 and age 85 (3.7736% to 6.2500%) and 117.2% between age 73 and age 90 (to 8.1967%) on a flat balance (IRS Pub 590-B, Table III).
10. Up to 85% of Social Security benefits become taxable once combined income exceeds $34,000 for a single filer and $44,000 for a couple, thresholds fixed in statute and not indexed to inflation (IRC §86; SSA Publication 915, U.S. federal).
11. The penalty for a missed or short RMD is 25% of the shortfall, reduced to 10% if corrected within the two-year correction window (SECURE 2.0 Act of 2022, §302; IRC §4974).
12. The RMD required beginning age is 73 for those reaching 72 after December 31, 2022, and rises to 75 for individuals born in 1960 or later (SECURE 2.0 Act of 2022, §107; IRS).
13. U.S. total retirement assets reached $49.1 trillion at year-end 2025, of which IRAs held $19.2 trillion and defined-contribution plans held $14.2 trillion (ICI, Q4 2025).
14. The 2026 standard Medicare Part B premium is $202.90 per month, and crossing the first IRMAA tier adds an $81.20 monthly Part B surcharge, or $974.40 per year per person (CMS, November 14, 2025).

The RMD Tax-Bomb Threshold: definition and what it measures

Public discussion of the “RMD tax bomb” splits into two camps. One camp publishes seven-figure case studies showing large forced withdrawals and steep tax bills. The other camp argues the fear is overblown because most retirees hold modest balances. Both can be right at once, and the reason is a single number this report names the RMD Tax-Bomb Threshold: the exact pre-tax account balance at which a first-year required minimum distribution actually changes a household’s tax outcome.

The metric is defined as the lowest pre-tax IRA or 401(k) balance at which the first-year RMD does one of three things, whichever occurs at the smallest balance: pushes the top dollar of income into a higher federal bracket, causes up to 85% of Social Security benefits to become taxable, or crosses the tier-1 IRMAA Medicare surcharge cliff. Each trigger is computed from a primary-source input: the divisor from the IRS Uniform Lifetime Table, the 2026 federal bracket schedule, the statutory Social Security inclusion thresholds, and the 2026 IRMAA breakpoint.

The first-year RMD is calculated as the prior-year-end balance divided by the age-73 divisor of 26.5, equal to 3.7736% of the balance (IRS Publication 590-B, Appendix B, Table III). Because the divisor is fixed by the IRS and the 2026 tax parameters are published, the threshold is fully reproducible. The table below reports the bracket-jump and IRMAA-cliff versions of the threshold for single and married filers at ages 73 and 75.

Illustrative. Divisors from IRS Pub 590-B Table III (26.5 at 73, 24.6 at 75); 2026 single standard deduction $18,150 (base $16,100 plus the single age-65 add-on of $2,050) and MFJ standard deduction $35,500, which assumes both spouses are age 65-plus (base $32,200 plus the married age-65 add-on of $1,650 per qualifying spouse); all per IRS Rev. Proc. 2025-32. Each filer also receives the OBBBA senior deduction (P.L. 119-21, sec. 70103) of $6,000 (single) or $12,000 (MFJ, both spouses 65-plus) for tax year 2026, applied here because the RMD, and therefore MAGI, at these bracket-jump thresholds stays below the $75,000 single and $150,000 joint phase-out start. 2026 brackets and IRMAA threshold held constant across ages for comparability. Because the RMD is treated as the household’s only income here, these figures mark the highest balances at which each trigger fires; any additional income from Social Security, pensions, or investments lowers the real-world threshold. See limitations.

What the numbers mean: the bracket-jump version of the threshold fires first, so the headline single-filer figure is $1.98 million (age 73). A single retiree whose RMD is the main source of income stays inside the 10% and 12% brackets on that RMD until the balance passes roughly $1.98 million. Readers exploring how to reduce that exposure before age 73 can review Roth conversion strategy and how much to convert to Roth.

The cohort data table: first-year RMD and the tax it generates

This is the citable core of the report. Each row applies the verified age-73 divisor (26.5) to a starting balance, then applies the 2026 single-filer standard deduction ($18,150, including the $2,050 age-65 add-on) plus the OBBBA senior deduction of up to $6,000 (P.L. 119-21, sec. 70103, phased out at 6% of MAGI between $75,000 and $175,000 for a single filer) and the 2026 bracket schedule, treating the RMD as the household’s only ordinary income. The final two columns report the marginal rate on the RMD’s top dollar and the effective federal rate the RMD actually carries.

Illustrative, not advice. RMD = balance / 26.5 (IRS Pub 590-B Table III). Tax computed on 2026 single brackets after the $18,150 standard deduction and the OBBBA senior deduction of up to $6,000 (IRS Rev. Proc. 2025-32; P.L. 119-21, sec. 70103). The senior deduction is full at or below $75,000 MAGI and phases out at 6% of MAGI above that, so it is reduced on the $2M, $2.5M, and $3M rows and eliminated at the $5M row (MAGI above $175,000). The RMD is treated as the household’s only income; real households with Social Security, pensions, or capital gains will see the RMD stack into higher brackets, raising both marginal and effective rates. State income tax is excluded.

What the numbers mean: the two most quoted balances in popular coverage, $1 million and $1.2 million, produce first-year federal tax bills of about $1,382 and $2,288 when the RMD is the household’s main income, effective rates of 3.7% and 5.1%. The tax bill only turns steep in the multimillion-dollar cohorts. This is the arithmetic that reconciles the alarmist and skeptical narratives: the mechanism is real, but it bites hard only at balances that a small minority of households hold.

How exposed are retirees, really

The share of RMD-age households sitting above the tax-bomb threshold is a question the case studies seldom address with population-level data. A population-representative percentile distribution of pre-tax balances by age was not verifiable to a primary source this session, so no exact “percent above $1.98 million” figure is published here. The strongest available signal comes from the balance distribution itself.

The median account balance for U.S. savers age 65 and older was $95,425 (Vanguard, How America Saves 2025, year-end 2024 U.S. recordkept defined-contribution plans). The average for the same group was $299,442 (same source and year). The single-filer bracket-jump threshold of $1,975,575 is about 21 times the median balance, meaning a median saver would need roughly 21 times their current account to reach it. The wide gap between the $95,425 median and the $299,442 average signals heavy right-skew, the statistical fingerprint of a distribution in which the $1 million-plus cohorts are a small minority.

Two limits apply to this reading. The Vanguard figures cover a single recordkeeper and defined-contribution plans only, excluding IRAs and rollovers, so they understate total per-person retirement wealth (Vanguard, How America Saves 2025, year-end 2024 U.S. data). A Federal Reserve Survey of Consumer Finances or EBRI IRA Database figure would give a population baseline and was not retrieved this session. What the data supports is directional: the median household sits far below every version of the threshold, while a minority in the multimillion-dollar cohorts carry nearly all of the genuine exposure.

What drives the numbers: the Uniform Lifetime Table

The engine of every figure in this report is the IRS Uniform Lifetime Table, which sets the divisor used to compute each year’s RMD. The RMD equals the prior December 31 balance divided by the divisor for the owner’s age. Because the divisor shrinks each year, the required withdrawal percentage rises even if the account balance never grows.

Source: IRS Publication 590-B, Appendix B, Table III (Uniform Lifetime), effective for distribution years 2022 and later. Withdrawal % = 1 / divisor; increase computed against the age-73 rate. U.S. federal.

What the numbers mean: a retiree pulling only the minimum still faces a required withdrawal that rises 65.6% by age 85 and 117.2% by age 90 relative to the first RMD, purely because the divisor falls. On a $1 million balance held flat, the required dollar amount would climb from $37,736 at 73 to $62,500 at 85, before any market growth. For a full explanation of the current rules and timing, see the Q3 Advisors overview of required minimum distributions for 2026.

The three second bombs: Social Security torpedo, IRMAA, and the widow’s penalty

The income-tax figures above understate real marginal cost because RMD income raises modified adjusted gross income, which triggers three secondary charges that the single-income tables above do not capture. Each is measurable, and together they explain why an extra dollar of RMD can cost far more than a bracket rate implies.

The Social Security tax torpedo

Up to 85% of a retiree’s Social Security benefit becomes taxable once combined income (adjusted gross income plus tax-exempt interest plus half of benefits) rises past $34,000 for a single filer and $44,000 for a couple (IRC §86; SSA Publication 915). These second-tier dollar thresholds were set by the Omnibus Budget Reconciliation Act of 1993 (Public Law 103-66) and are not indexed to inflation, so more retirees cross them every year (IRC §86; SSA Publication 915, U.S. federal). Inside the phase-in range, each added dollar of RMD can pull an extra $0.85 of Social Security into taxable income, so a single RMD dollar produces $1.85 of taxable income. For a household in the 22% bracket, the effective marginal rate on that dollar reaches 22% times 1.85, equal to 40.7% (derived from IRC §86 inclusion and the 2026 rate schedule). In the 12% bracket the same mechanism produces a 22.2% effective marginal rate.

The IRMAA Medicare cliff

RMDs raise MAGI, which can push a retiree over an IRMAA breakpoint and add a surcharge to Medicare premiums. The 2026 standard Part B premium is $202.90 per month, and the first IRMAA tier applies above $109,000 MAGI for a single filer and $218,000 for a couple, based on 2024 income (CMS, November 14, 2025). Crossing the first tier adds an $81.20 monthly Part B surcharge, or $974.40 per year per person (CMS, 2026). IRMAA is a cliff, not a phase-in: a single dollar over the line applies the full surcharge for the year. Full tier-by-tier breakpoints and the Part D surcharge amounts were not verified to the CMS primary document this session and are excluded. Q3 Advisors maintains a dedicated breakdown of the 2026 Medicare IRMAA brackets and premiums.

The widow’s penalty

When one spouse dies, the survivor usually files as single the following year, and the same income is taxed under compressed single brackets. On the age-65-adjusted basis used throughout this report, the 2026 standard deduction falls from $35,500 (MFJ, both spouses 65-plus) to $18,150 (single, 65-plus), the OBBBA senior deduction falls from $12,000 (both spouses 65-plus) to $6,000 (single, 65-plus) for tax years through 2028 (P.L. 119-21, sec. 70103), and the 12% bracket ceiling falls from $100,800 to $50,400 (IRS Rev. Proc. 2025-32). The tier-1 IRMAA threshold halves from $218,000 to $109,000 MAGI (CMS, 2026). A surviving spouse can therefore face a higher bracket and an IRMAA surcharge on the same RMD that the couple absorbed comfortably. Q3 Advisors covers this in detail in the analysis of the widow’s penalty for 2026.

Original synthesis

Three derived insights follow from combining the verified inputs. Each states its formula, its sourced inputs, and its limits.

1. The RMD Tax-Bomb Threshold (proprietary metric)

Formula: solve for the balance B such that (B / 26.5) minus the standard deduction minus the OBBBA senior deduction equals the top of the 12% bracket, so B = (bracket top + standard deduction + senior deduction) times 26.5. Inputs: divisor 26.5 (IRS Pub 590-B Table III); single 12% ceiling $50,400 and standard deduction $18,150 (IRS Rev. Proc. 2025-32); OBBBA senior deduction $6,000 single and $12,000 MFJ (P.L. 119-21, sec. 70103), which applies in full because MAGI at the threshold ($74,550 single, $148,300 MFJ) stays below the $75,000 single and $150,000 joint phase-out start. Result: (50,400 + 18,150 + 6,000) times 26.5 = $1,975,575 single; (100,800 + 35,500 + 12,000) times 26.5 = $3,929,950 MFJ at age 73. Limitation: assumes the RMD is the household’s only income; any other income lowers the real threshold; the senior deduction applies only through tax year 2028; and the figure holds 2026 parameters constant.

2. The median-reality ratio

Logic: divide the single-filer threshold by the median 65-plus balance to express exposure as a multiple. Inputs: threshold $1,975,575 (computed above); median balance $95,425 (Vanguard, How America Saves 2025, year-end 2024 U.S. data). Result: about 21 to 1, meaning a median saver would need roughly 21 times their current balance to reach the bracket-jump threshold. Limitation: the median is a single-recordkeeper, defined-contribution figure that excludes IRAs, so the true population multiple may be somewhat lower.

3. The torpedo-adjusted marginal rate

Formula: statutory bracket rate times 1.85, the taxable-income multiplier created when each RMD dollar makes $0.85 of Social Security taxable. Inputs: 85% inclusion ceiling (IRC §86); 2026 bracket rates (IRS Rev. Proc. 2025-32). Result: 40.7% peak effective marginal rate in the 22% bracket, 22.2% in the 12% bracket. Limitation: applies only inside the Social Security phase-in range and assumes the retiree has not yet reached the 85% ceiling on all benefits.

Figures

Source quality ranking

Tier 1, primary and government. IRS Publication 590-B, Appendix B, Table III (Uniform Lifetime divisors, read from the IRS PDF); IRS Revenue Procedure 2025-32 and IR-2025-103, October 9, 2025 (2026 brackets, standard deduction, age-65 add-on); Public Law 119-21 (OBBBA), sec. 70103 (the up-to-$6,000 per-person senior deduction for filers age 65-plus, tax years 2025 through 2028, MAGI-phased); IRS retirement-topics RMD guidance (age and timing); SECURE 2.0 Act of 2022, §107 and §302, and IRC §§4974 and 86; CMS 2026 Medicare Parts A and B premiums announcement (Part B $202.90, first IRMAA threshold $109,000 single / $218,000 MFJ); SSA Publication 915 (Social Security taxability).

Tier 2, credible market research and trade data. Investment Company Institute, Quarterly Retirement Market Data, Q4 2025 (aggregate IRA, DC, and total retirement assets, drawn from Federal Reserve Financial Accounts); Vanguard, How America Saves 2025 (defined-contribution balances by age, year-end 2024 U.S. plan-year data, single-recordkeeper); Tax Foundation, 2026 Tax Brackets (used only to cross-verify the IRS figures).

Tier 3, reputable journalism. Forbes and Kiplinger (2026 bracket and IRMAA reporting) and Fox Business (contribution limits) were used only as pointers to locate primary figures, not cited as the origin of any fact.

Excluded and why. General secondary aggregator and calculator pages were not used as sources of record. Specific unverifiable figures were excluded entirely, including full IRMAA tier breakpoints beyond the first threshold, Part D surcharge amounts, NIIT MAGI dollar thresholds, the 2026 estate-tax exemption, the Section 415(c) limit, and any population-representative median IRA balance by age.

Most quotable statistics

Data limitations

• The threshold and cohort tables treat the RMD as the household’s only income; real households stack RMDs on Social Security, pensions, and investment income, which lowers the effective threshold and raises real marginal rates.
• All brackets, deductions, and IRMAA figures are 2026 values; multi-year projections require an inflation-indexation assumption not sourced here, so the age-75 rows hold 2026 parameters constant for comparability only.
• The federal-tax figures apply the OBBBA senior deduction of up to $6,000 per filer age 65-plus (P.L. 119-21, sec. 70103), which is available only for tax years 2025 through 2028 and phases out at 6% of MAGI between $75,000 and $175,000 for a single filer (between $150,000 and $250,000 joint); absent an extension, the thresholds and cohort tax figures would rise after 2028 (2026, U.S. federal). Because it is a per-person deduction claimed on the return rather than an adjustment to gross income, it reduces taxable income but not the MAGI used for the IRMAA cliff, so the IRMAA-trigger balances are unaffected.
• State income tax is excluded from every figure.
• Calculations assume the Uniform Lifetime Table applies; a spouse more than 10 years younger and named as sole beneficiary uses the Joint Life table, producing a smaller RMD.
• The Social Security inclusion thresholds ($34,000 single and $44,000 joint combined income) are the second-tier statutory figures set by the Omnibus Budget Reconciliation Act of 1993 (Public Law 103-66) and codified at IRC §86; they are fixed in statute and not indexed to inflation, so the share of benefits taxed rises over time while other 2026 parameters are indexed (U.S. federal).
• Full IRMAA tier breakpoints beyond the first threshold, Part D surcharge amounts, and NIIT MAGI thresholds were not verified and are excluded.
• Balance figures are Vanguard single-recordkeeper, defined-contribution data (How America Saves 2025, year-end 2024 U.S.), not a national census; a Federal Reserve SCF or EBRI figure would be needed for a population baseline.
• The commonly cited share of retirees who take only the minimum was not verifiable to a primary source this session and is not reported.

Recommended dataset fields

A downloadable version of this asset would contain, per row: starting pre-tax balance; filing status (single or MFJ); owner age (73 through 95); Uniform Lifetime divisor; first-year RMD dollars; RMD as a percent of balance; assumed other income; standard deduction applied; taxable income; federal income tax; marginal rate on the RMD; effective rate on the RMD; a flag for whether the row crosses the 22% bracket, the 85% Social Security ceiling, or the tier-1 IRMAA cliff; and the source citation for each parameter. A companion sheet would hold the full Uniform Lifetime Table and the 2026 bracket schedule.

Suggested headlines

• The RMD Tax-Bomb Threshold Is $1.98 Million: Where the Forced-Withdrawal Tax Actually Starts to Bite
• Most Retirees Never Reach the RMD Tax Bomb: The Median Balance Produces a $0 Federal Tax Bill
• Why an Extra Dollar of RMD Can Be Taxed at 40.7%: The Social Security Torpedo, Measured
• The Widow’s Penalty in Numbers: How a Survivor’s IRMAA Threshold Halves to $109,000
• From 3.77% to 8.20%: How the Uniform Lifetime Table Forces Bigger Withdrawals With Age

Frequently asked questions

At what balance does the first-year RMD push a single retiree into a higher bracket?

For a single filer whose RMD is the main source of income, the balance is about $1,975,575 at age 73 (2026, U.S. federal). At that point the RMD of roughly $74,550, minus the $18,150 standard deduction and the $6,000 OBBBA senior deduction, reaches the top of the 12% bracket, so the next dollar is taxed at 22% (IRS Pub 590-B Table III; IRS Rev. Proc. 2025-32; P.L. 119-21, sec. 70103).

What percent of households age 73-75 sit above that threshold?

No population-representative percentage was verifiable to a primary source this session, so none is published. The best available signal is that the $95,425 median U.S. 65-plus balance is about one-twenty-first of the $1.98 million single threshold (Vanguard, How America Saves 2025, year-end 2024), indicating the large majority of households sit far below it, with genuine exposure concentrated in the multimillion-dollar minority.

How much is the first RMD on the median balance, and what tax does it generate?

The median U.S. 65-plus balance was $95,425 (Vanguard, How America Saves 2025, year-end 2024), producing a first-year RMD at age 73 of about $3,601. As a single filer’s only income, that RMD falls below the $18,150 standard deduction and generates $0 in federal income tax (IRS Rev. Proc. 2025-32). Households with other income would pay tax on the RMD at their stacked marginal rate.

What percent must come out at age 73 versus age 75?

At age 73 the Uniform Lifetime divisor is 26.5, so the required withdrawal is 3.7736% of the prior year-end balance. At age 75 the divisor is 24.6, so the required withdrawal is 4.0650%, a 7.7% larger share (IRS Publication 590-B, Appendix B, Table III, U.S. federal, effective for distribution years 2022 and later).

What percent of retirees take only the minimum?

This behavioral figure could not be verified to a primary source this session and is not reported here. A population-representative answer would require the EBRI IRA Database or a comparable recordkeeper study confirmed to its published tables. Q3 Advisors excludes unverifiable statistics rather than stating them as fact.

How much Social Security becomes taxable when RMD income stacks on top?

Up to 85% of Social Security benefits become taxable once combined income exceeds $34,000 for a single filer or $44,000 for a couple (IRC §86; SSA Publication 915, U.S. federal). These thresholds are statutory and are not indexed to inflation, so RMD income added on top of benefits frequently pushes retirees to the 85% ceiling.

How high can the effective marginal rate spike from the tax torpedo?

Within the Social Security phase-in range, each RMD dollar can make $0.85 of benefits taxable, creating $1.85 of taxable income per RMD dollar. For a household in the 22% bracket, the effective marginal rate reaches 40.7% (22% times 1.85), derived from IRC §86 inclusion rules and the 2026 rate schedule (U.S. federal).

How much does the IRMAA threshold drop for a surviving spouse?

The tier-1 IRMAA MAGI threshold falls from $218,000 (married filing jointly) to $109,000 (single) in 2026, a $109,000 drop (CMS, November 14, 2025). Crossing the first tier adds an $81.20 monthly Part B surcharge, or $974.40 per year per person. Part D surcharge amounts were not verified this session and are excluded.

How much larger is the RMD by age 85 or 90?

On a flat balance, the required withdrawal percentage rises from 3.7736% at age 73 to 6.2500% at age 85 (a 65.6% increase) and to 8.1967% at age 90 (a 117.2% increase), because the Uniform Lifetime divisor shrinks from 26.5 to 16.0 to 12.2 (IRS Publication 590-B, Table III, U.S. federal).

What is the first RMD and tax on $1 million, $1.2 million, and $2.5 million?

At age 73, a $1,000,000 balance produces a $37,736 RMD and about $1,382 in federal tax as sole income (3.7% effective). A $1,200,000 balance produces a $45,283 RMD and about $2,288 (5.1% effective). A $2,500,000 balance produces a $94,340 RMD and about $10,409 (22% marginal, 11.0% effective), all for a single filer under 2026 brackets and after the OBBBA senior deduction (IRS sources; P.L. 119-21, sec. 70103).

What is the penalty for missing an RMD?

The excise tax is 25% of the shortfall, reduced from 50% by the SECURE 2.0 Act of 2022, §302, effective tax year 2023. It drops further to 10% if the shortfall is corrected within the two-year correction window (SECURE 2.0 Act of 2022, §302; IRC §4974, U.S. federal).

How many trillions sit in tax-deferred accounts subject to future RMDs?

As of December 31, 2025, U.S. IRAs held $19.2 trillion and employer defined-contribution plans held $14.2 trillion, of which 401(k) plans held $10.1 trillion, within total retirement assets of $49.1 trillion (ICI, Q4 2025). The large majority is pre-tax and exposed to future RMD taxation; Roth balances within these totals are not subject to owner RMDs.

Sources

Internal Revenue Service, Publication 590-B, “Distributions from Individual Retirement Arrangements (IRAs),” Appendix B, Table III (Uniform Lifetime), page 65. https://www.irs.gov/pub/irs-pdf/p590b.pdf
Internal Revenue Service, “IRS releases tax inflation adjustments for tax year 2026” (IR-2025-103, October 9, 2025), implementing Revenue Procedure 2025-32 (2026 brackets, standard deduction, age-65 add-on).
Internal Revenue Service, “Retirement topics, Required minimum distributions (RMDs),” irs.gov/retirement-plans (RMD age and timing).
Internal Revenue Service, “401(k) limit increases to $24,500 for 2026; IRA limit increases to $7,500” (IRS newsroom, November 2025).
SECURE 2.0 Act of 2022, §107 (RMD beginning age) and §302 (excise-tax reduction); Internal Revenue Code §§4974 and 86.
Public Law 119-21 (One Big Beautiful Bill Act), sec. 70103 (senior deduction of up to $6,000 per filer age 65-plus, tax years 2025 through 2028, MAGI-phased), as implemented in IRS Rev. Proc. 2025-32.
Social Security Administration, Publication 915, “Social Security and Equivalent Railroad Retirement Benefits” (combined-income taxability thresholds).
Centers for Medicare & Medicaid Services, “2026 Medicare Parts A & B Premiums and Deductibles” (November 14, 2025).
Investment Company Institute, “Retirement Assets Total $49.1 Trillion in Fourth Quarter 2025” (March 26, 2026), Quarterly Retirement Market Data.
Vanguard, “How America Saves 2025” (defined-contribution balances by age; year-end 2024 U.S. plan-year data; age 65-plus median $95,425, average $299,442).
Tax Foundation, “2026 Tax Brackets” (used to cross-verify IRS Rev. Proc. 2025-32).
Related Q3 Advisors resources: Roth conversions and state taxes, 2026 retirement contribution limits, and Roth conversion break-even analysis.