You must start RMD at age 73 in 2026….
But you can elect to delay the 2026 into 2027… so you would have 2 rmd payouts in 2027…. Generally not a good idea if it puts you in a higher marginal bracket.
· First Deadline: You can take your first RMD during the year you turn 73 or delay it until April 1 of the following year (April 1, 2027).
· Double Distribution Warning: Delaying your first RMD to 2027 means you must take two RMDs in 2027—the delayed one from 2026 and the regular one for 2027
RMD amount is calculated based on 12.31.25 Balances in your qualified plans (qualified means you got some sort of deduction when money was put in).
401k, IRA, Simple IRA, SEP….. those kind of plans…..
It does NOT include annuities nor Roth’s.
Formula: Divide your December 31, 2025 account balance by the Distribution Period (life expectancy factor) matching your 2026 age.
So, if 12.31.25 qualified balances total $500,000 divided by 26.5 = $18,698
If you have a dozen different qualified accounts you do NOT have to pay from each….
You can pay from 1 account for the total RMD required.
Clear as mud?