Yesterday we covered what a required minimum distribution is and why the government makes you take one. Today's question is the one people ask first: when does it start for me?
The honest answer is that it depends on the year you were born, because the age keeps climbing.
What age do RMDs start?
For 45 years, the starting age was seventy and a half. Not 70, not 71. Since 2019, Congress has moved it up twice:
- Born before July 1, 1949: 70½, the original rule from 1974.
- Born July 1, 1949 through 1950: 72, set by the SECURE Act in December 2019.
- Born 1951 through 1959: 73, set by SECURE 2.0, effective 2023.
- Born 1960 or later: 75, also from SECURE 2.0, taking effect in 2033.
If you turn 73 in 2026, meaning you were born in 1953, this is your first RMD year. One wrinkle: for people born in 1959, the law's wording overlaps, and the IRS has proposed 73 as the starting age.
Can you wait on the first one?
Yes, once. Your first RMD can wait until April 1 of the following year. Every RMD after that is due by December 31.
Here's the catch. Waiting on the first one means taking two RMDs in the same tax year: last year's, by April 1, and this year's, by December 31. Two withdrawals in one year can push you into a higher tax bracket, and over one of the income lines that raise your Medicare premiums.
Sometimes waiting is still worth it, for example if your income will be lower next year. As David puts it in the guide, it should be a decision, not a default.
What if you're still working?
If you're still employed and don't own more than 5% of the company, your current employer's plan may let you delay RMDs from that plan until you retire.
The exception has limits. It doesn't apply to your IRAs, and it doesn't apply to plans from former employers. Those still follow the age ladder above.
What should you do with this?
- Find your starting age from your birth year.
- If your first RMD year is coming, decide on purpose whether to take it by December 31 or wait until April 1.
- If you're still working, ask your plan whether it allows the delay.
Tomorrow: how much you actually have to take out. The math is simpler than most people expect.
The full age ladder and the rest of the rules are in David's guide, The Hidden History of the Rule That Taxes Your Retirement. And if you'd like to map out your first RMD year alongside your tax professional, you can begin the conversation here.
This is Part 2 of The Rule That Taxes Your Retirement, a seven-part series from David Schaeffer's guide. For education only. Not tax, legal or investment advice.
Disclaimer: The information in this article is for educational purposes only and does not constitute tax, legal, or investment advice. Tax laws change frequently, and individual circumstances vary. American Retirement Advisors does not provide tax or legal services. Before making any tax-related decisions, consult a qualified CPA, tax attorney, or financial planner who can evaluate your specific situation.