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Required Minimum Distributions: What to Do Before December 31

ByWalt Pearson

If you have money in a traditional IRA or a workplace retirement plan, the end of the year brings one important deadline: your required minimum distribution, often called an RMD. Here is a plain-English look at the rules as of October 2026, so you can check your plans before December 31.

What an RMD Is

An RMD is the smallest amount the IRS says you must take out of certain retirement accounts each year once you reach a set age. The money is generally counted as taxable income, except for any part that was already taxed or is tax-free.

According to the IRS, most people must start taking RMDs at age 73. Accounts that have them include traditional, SEP, SARSEP and SIMPLE IRAs, plus 401(k), 403(b), 457(b) and profit-sharing plans. Roth IRAs have no RMDs while the owner is alive, and neither do designated Roth accounts in a 401(k) or 403(b).

The Key Dates

  • Your yearly RMD is due by December 31.
  • Your very first RMD (for the year you turn 73) can wait until April 1 of the next year.
  • If you wait until April 1, you will take two RMDs that year: one by April 1 and one by December 31. Both count as income in the same tax year.

How the Amount Is Figured

In general, you take each account’s balance on December 31 of last year and divide it by a life-expectancy number from the IRS tables in Publication 590-B. Most people use the Uniform Lifetime Table. Your bank or plan may do the math for you, but the IRS says you are still responsible for getting it right.

A Few Rules Worth Knowing

  • Several IRAs: Figure the RMD for each one, then you may take the total from any one or more of your IRAs. 403(b) accounts work the same way.
  • 401(k) and 457(b) plans: The RMD must come out of each plan separately.
  • Still working: Many workplace plans let you wait until the year you retire, unless you own 5% or more of the business. Check your plan’s rules. This exception does not apply to IRAs.
  • Giving to charity: If you are 70½ or older, a qualified charitable distribution (QCD) paid straight from your IRA to a charity can count toward your RMD. The 2026 limit is $111,000 per person.

If You Miss It

A missed RMD can bring a 25% excise tax on the amount you did not take. The IRS lowers that to 10% if you fix it within two years, and it may waive the tax for a reasonable error if you are correcting it. This is reported on Form 5329.

Simple Steps Before December 31

  1. List every retirement account you have, including old workplace plans.
  2. Ask each bank or plan for your 2026 RMD amount, or check your statements.
  3. Decide how you want the money paid, and whether you want taxes withheld.
  4. Request the withdrawal early in December or sooner, so processing time does not push you past the deadline.

A safety note: be wary of anyone who contacts you out of the blue about your retirement money and asks for a fee, gift cards, a wire transfer or crypto. Hang up and call your plan using the number on your statement.

Tax rules can be complicated and vary with your situation. For your own accounts, check with your plan, the IRS, or a qualified tax professional.

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