Overview

The SECURE 2.0 Act introduced the most significant Required Minimum Distribution (RMD) updates in years. If you own a traditional IRA, 401(k), 403(b), 457(b), or are a beneficiary of an inherited account, these changes affect your withdrawal age, penalties, withholding, and strategic planning options like Roth conversions and Qualified Charitable Distributions (QCDs).

This guide explains the new starting ages, penalty relief, Roth employer plan rules, catch-up timing, and beneficiary impacts—plus concrete action steps to optimize taxes and cash flow.

Key Changes At a Glance

• New RMD start ages: 73 now; rises to 75 for later cohorts
• Lower penalties for missed RMDs (25% → 10% when corrected promptly)
• Roth 401(k)/403(b) balances no longer require RMDs in retirement
• QCDs still available from age 70.5 and indexed for inflation
• Inherited IRA 10‑year rule remains; some beneficiaries must still take annual RMDs

New RMD Start Ages

• Age 73: If you were born 1951–1959, your first RMD generally begins the year you turn 73
• Age 75: If born 1960 or later, your first RMD begins at 75

You may delay your first RMD to April 1 of the following year, but that means taking two RMDs in a single tax year. Use our RMD tables and these calculators to model tax impact:

• IRA RMD Table
• Required Minimum Distribution Table
• RMD Table Calculator

Penalty Relief for Missed RMDs

SECURE 2.0 reduces the excise tax for missed RMDs to 25%, and further to 10% if corrected in a timely manner. File Form 5329 and take the shortfall as soon as practical. Keep documentation.

Roth Employer Plans Now Mirror Roth IRAs

Roth balances in 401(k)/403(b) plans are no longer subject to RMDs for retirees. That simplifies rollovers: staying in-plan may be fine. Still consider consolidating to manage investments and beneficiaries.

QCDs Remain a Powerful Strategy

Qualified Charitable Distributions are still allowed starting at age 70.5 directly from IRAs, up to the annual limit (indexed). QCDs can satisfy RMDs while keeping the distribution out of Adjusted Gross Income—helpful for IRMAA, Social Security taxation, and credit phaseouts.

Planning Checklist for 2025

1. Confirm your first RMD year (73 or 75) and whether to delay to April 1
2. Coordinate withholding vs. estimated taxes to avoid penalties
3. Use partial Roth conversions before RMD years to flatten lifetime taxes
4. If charitably inclined, plan QCDs from IRAs after 70.5
5. Review beneficiary designations and the 10‑year rule impact
6. Map multi‑account RMD aggregation rules (IRA vs. 403(b) vs. 401(k))

Beneficiary Considerations

Most non‑spouse beneficiaries must empty inherited accounts within 10 years. Some designated beneficiaries (e.g., minor children, disabled, chronically ill) may still use life expectancy payouts. The IRS continues to refine annual distribution guidance—monitor updates and document withdrawals.

Worked Example

Assume Elena turns 73 in 2026 with a $460,000 IRA and a 12/31/2025 balance of $440,000. Using the Uniform Lifetime Table factor for age 73 (see our RMD tables), her 2026 RMD ≈ $440,000 ÷ factor. She compares:

• Taking the first RMD in 2026 vs. delaying to April 1, 2027
• Combining with a late‑year Roth conversion in 2025 to smooth brackets
• Donating part of her RMD as a QCD to reduce AGI

Run both scenarios in the calculators linked above to estimate effective tax savings.

FAQs

Does SECURE 2.0 change Roth IRA RMDs?

No—Roth IRAs still have no lifetime RMDs for owners. The change eliminated RMDs for Roth balances in employer plans.

Can I aggregate RMDs across account types?

You may aggregate IRAs together and 403(b)s together, but 401(k) RMDs must be taken from each plan separately.

What if I still work past 73?

Some employer plans allow RMD deferral if you’re not a 5% owner and still employed. IRAs don’t offer this deferral.

Next Steps

• Calculate your RMD using: IRA RMD Table and RMD Table Calculator
• Read: RMD Factor Table and RMD Distribution Table
• Map conversions and QCDs to your bracket and charitable goals