Required Minimum Distributions (RMDs): Complete 2026 Guide
The SECURE 2.0 Act (2022) changed the RMD starting age and reduced penalties for missed RMDs. This guide covers the current rules, how to calculate your RMD, special considerations for crypto and gold IRA holders, and inherited IRA rules.
By James Mitchell, CFA · Last Updated: March 31, 2026
What Is an RMD?
A Required Minimum Distribution (RMD) is the minimum amount the IRS requires you to withdraw annually from certain retirement accounts once you reach a specified age. RMDs apply to Traditional IRAs, SEP-IRAs, SIMPLE IRAs, and most employer-sponsored plans (401(k), 403(b), 457(b)). Roth IRAs are not subject to RMDs during the original owner's lifetime.
The purpose of RMDs is to ensure that tax-deferred retirement savings are eventually taxed. The IRS requires distributions so that the government collects income tax on funds that were contributed pre-tax.
RMD Age Under SECURE 2.0 Act
| Birth Year | RMD Starting Age | Governing Law |
|---|---|---|
| Before 1951 | 70½ | Pre-SECURE Act (original law) |
| 1951–1959 | 72 | SECURE Act (2019) |
| 1960 and later | 73 | SECURE 2.0 Act (2022) |
| Note: Starting in 2033 | 75 (planned) | SECURE 2.0 Act — further increase scheduled |
How to Calculate Your RMD
Your RMD is calculated by dividing your IRA account balance as of December 31 of the prior year by a life expectancy factor from the IRS Uniform Lifetime Table (IRS Publication 590-B, Appendix B).
RMD Calculation Formula
RMD = Prior Year-End Account Balance ÷ IRS Life Expectancy Factor
Example:
Account balance on December 31, 2025: $500,000
Age in 2026: 75 years old
IRS Uniform Lifetime Table factor for age 75: 24.6
2026 RMD = $500,000 ÷ 24.6 = $20,325
The IRS Uniform Lifetime Table is available in IRS Publication 590-B. If your sole beneficiary is your spouse who is more than 10 years younger, you use the Joint Life and Last Survivor Expectancy Table, which produces lower RMDs.
RMDs and Crypto/Gold IRAs: Special Considerations
RMDs from self-directed IRAs holding crypto or precious metals present unique challenges:
Valuation Complexity
Your RMD is based on the account's fair market value on December 31 of the prior year. For volatile assets like crypto, the year-end value may be significantly different from the value when you actually take the distribution.
Liquidity Risk
If your SDIRA holds illiquid assets (physical metals, private equity), you may need to sell assets to fund the RMD. In a declining market, this forces you to sell at potentially unfavorable prices.
In-Kind Distributions
In some cases, you may be able to take an in-kind distribution (receiving physical metals or transferring crypto to a personal wallet) rather than selling. However, this has tax implications — the fair market value of the distributed assets is taxable income.
Aggregation Rules
If you have multiple Traditional IRAs, you can aggregate the RMDs and take the total from any one or combination of the accounts. This allows flexibility in which assets you liquidate.
Penalty for Missing an RMD
Under SECURE 2.0, the penalty for failing to take an RMD was reduced from 50% to 25% of the shortfall (the amount you should have taken but did not). If you correct the missed RMD within the "correction window" (generally 2 years), the penalty is further reduced to 10%.
Despite the reduced penalty, missing an RMD is still a significant and avoidable tax event. Set up automatic reminders and consider working with a tax advisor to ensure RMDs are taken correctly each year.
Primary Sources & References
Important Disclaimer
This page is for informational and educational purposes only. RMD rules are complex and penalties for non-compliance are significant. Always consult a qualified tax professional. See our Editorial Policy.
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