Every fall, I make a few calls to clients to make sure this one hasn't slipped through the cracks. With about eight weeks left in 2026, I wanted to send the same reminder to everyone who reads these notes.
It takes a few minutes to check, and it's much easier to handle now than in the last days of December.
The 30-Second Check
Answer yes or no to each question.
- Will you be 73 or older by December 31, 2026? If you were born in 1960 or later, your RMDs start at 75 instead.
- Do you have a traditional, SEP, or SIMPLE IRA, or a 401(k), 403(b), or similar employer plan?Roth IRAs, and since 2024 Roth 401(k) and 403(b) accounts, have no RMDs during the original owner's lifetime.
- If it's an employer plan, have you retired from that employer? Some plans let people who are still working, and own less than 5% of the company, wait until retirement. This exception doesn't apply to IRAs.
- Have you withdrawn less than your full 2026 RMD so far? Your RMD is generally your December 31, 2025 balance divided by an IRS life-expectancy factor.
If you answered yes to all four, you still have a withdrawal to make this year. Inherited accounts follow their own rules, so if you have one, it's worth a separate conversation.
The Dates That Matter
- Your first RMD Due by April 1 of the year after you reach RMD age (73, or 75 if born in 1960 or later).
- Every RMD after that Due by December 31 each year.
- The "double RMD" trap If you wait until April 1 for your first RMD, your second is due December 31 of that same year. That's two taxable withdrawals in one tax year.
If You Miss It
The IRS charges a 25% excise tax on the amount you didn't withdraw, reduced to 10% if you correct it within two years. It's reported on IRS Form 5329, and the IRS may waive the penalty for a reasonable error if you take the missed amount promptly and explain what happened. In other words, a missed RMD is fixable.
My Tip
Don't wait until the last week of December. Custodians get busy at year-end, and a request that takes a day in October can take much longer around the holidays. If charitable giving is already part of your plan and you're 70½ or older, ask about a Qualified Charitable Distribution: it goes directly from your IRA to a qualified charity and can count toward your RMD. That needs lead time too.
If you'd like us to confirm your numbers or double-check an account, don't hesitate to call our team. It's a short conversation, and it's one less thing to think about over the holidays.
— Ron