3 Required Minimum Distribution (RMD) Rule Changes You Need to Know in 2026

Tax-deferred account holders born between 1951 and 1959 must start RMDs at age 73.

The Secure 2.0 Act exempted Roth 401(k) plans from RMDs while the original account holder is still alive.

The Secure 2.0 Act reduced the excise tax penalty to 25% when RMDs are not completed on time.

Required minimum distributions (RMDs) are mandatory annual withdrawals from tax-deferred retirement accounts, such as 401(k) plans and traditional individual retirement accounts (IRAs). The IRS enforces RMDs to ensure income tax is eventually paid on contributions and any gains that were allowed to grow in a tax-free environment.

RMD rules change periodically due to legislative updates. For instance, the Secure 1.0 Act (passed in 2019) increased the age at which RMDs begin and introduced a mandatory 10-year liquidation rule for retirement accounts inherited by non-spouse beneficiaries.

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Similarly, the Secure 2.0 Act (passed in 2022) once again increased the age at which RMDs begin, exempted Roth 401(k) plans from RMDs during the original account holder's lifetime, and reduced the excise tax penalty charged when someone fails to complete an RMD on time.

Retirees need to understand those changes to avoid making costly financial mistakes.