The age when you must start taking Required Minimum Distributions (RMDs) has changed multiple times in recent years. Understanding these changes and what they mean for your retirement planning is crucial.
History of RMD Age Changes
Original Rule (Pre-2020)
RMD Age: 70.5
How Long It Lasted: Decades
Why It Changed: Lawmakers wanted to give people more time before forced distributions
SECURE Act (2020)
Change: Age 70.5 → Age 72
Effective: For those turning 70.5 after December 31, 2019
Why: Give retirees more time before RMDs start
Impact: Delayed RMDs by 1.5 years for affected retirees
SECURE 2.0 Act (2023)
Change: Age 72 → Age 73
Effective: For those turning 72 after December 31, 2022
Why: Further delay RMDs
Impact: Delayed RMDs by another year
Future Change (2033)
Change: Age 73 → Age 75
Effective: For those turning 74 after December 31, 2032
Why: Continue trend of delaying RMDs
Impact: Will delay RMDs by another 2 years
Current RMD Age (2026)
2026 Rules
RMD Age: 73
Who It Applies To:
- Those turning 73 in 2026 or later
- Born 1951 or later
- Why: Based on birth year
First RMD:
- Must take by April 1 of year after turning 73
- Then annually by December 31
- Why: Gives time for first RMD
Who Is Affected
Born 1951-1959:
- RMD age: 73
- Why: SECURE 2.0 rules
Born 1960 or Later:
- RMD age: 73 (until 2033 change)
- Why: Current rules apply
Future RMD Age Changes
2033 Change
New RMD Age: 75
Effective: For those turning 74 after December 31, 2032
Who It Applies To:
- Born 1960 or later
- Why: Future change
Impact: Delays RMDs by 2 more years
Timeline
2026-2032: Age 73 2033+: Age 75 (for those born 1960+)
Why Gradual: Phased implementation
How Age Changes Affect You
More Time to Grow
Benefit: Delayed RMDs mean more time for tax-deferred growth
Example:
- $1,000,000 IRA at age 70
- Age 70.5: RMD starts (old rule)
- Age 73: RMD starts (current rule)
- 2.5 more years of growth: More money in account
More Time for Roth Conversions
Benefit: More years to convert before RMDs start
Example:
- Age 70.5: 2.5 years to convert (old rule)
- Age 73: 5 years to convert (current rule)
- More time: Can convert more gradually
Lower RMDs Initially
Benefit: Starting later means smaller initial RMDs
Example:
- Age 70.5: Life expectancy factor ~27.4, RMD ~$36,500
- Age 73: Life expectancy factor ~26.5, RMD ~$37,700
- But: Account grew 2.5 more years, so RMD may be similar or higher
Actually: Account likely grew, so RMD may be higher despite starting later
Tax Planning Flexibility
Benefit: More years to plan withdrawals strategically
Example:
- More time to convert to Roth
- More time to plan bracket management
- Why: Flexibility before forced distributions
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Planning for RMD Age Changes
Strategy 1: Take Advantage of Delay
Use Extra Time:
- Continue tax-deferred growth
- Plan Roth conversions
- Why: Maximize benefit of delay
Strategy 2: Roth Conversions
Convert Before RMDs:
- More time to convert
- Spread conversions over more years
- Why: Lower tax impact
Example:
- Age 70-73: Convert $50,000/year
- Total: $200,000 converted
- No RMDs on converted amount: Saves on future taxes
Strategy 3: Plan Withdrawal Strategy
Before RMDs Start:
- Plan how to handle RMDs
- Consider QCDs
- Plan for tax impact
- Why: Better prepared
Strategy 4: Don't Wait Too Long
Start Planning Early:
- Don't wait until age 73
- Start planning at 65-70
- Why: More options, better outcomes
What This Means for Retirement Planning
Longer Tax-Deferred Growth
Benefit: More years of tax-deferred growth
Impact: Larger account balances, but also larger RMDs eventually
More Conversion Opportunities
Benefit: More years for Roth conversions
Impact: Can convert more gradually, at lower tax rates
Delayed Tax Revenue
Benefit: Delay paying taxes on distributions
Impact: More money working for you longer
Larger RMDs Eventually
Reality: Starting later means larger RMDs when they start
Why: Account grew longer, and you're older (smaller life expectancy factor)
Example:
- Age 70.5: $1,000,000, factor 27.4, RMD $36,500
- Age 73: $1,100,000 (growth), factor 26.5, RMD $41,500
- Higher RMD: Despite starting later
Common Questions
Q: What if I'm already taking RMDs?
A: If you started before the change, you continue. Changes only affect those who haven't started yet.
Q: Can I delay my RMDs further?
A: No, you must start at the required age. But you can take more than the minimum.
Q: What if I'm still working?
A: If you're still working and don't own 5%+ of the company, you can delay 401(k) RMDs until retirement. But IRA RMDs still start at 73.
Q: Do Roth IRAs have RMDs?
A: No, Roth IRAs don't have RMDs during the owner's lifetime.
Q: What about inherited IRAs?
A: Different rules apply. Most non-spouse beneficiaries must take distributions within 10 years.
Bottom Line
RMD age changes:
- Age has increased: 70.5 → 72 → 73 (and 75 in 2033)
- More time to grow: Tax-deferred growth continues longer
- More conversion opportunities: More years for Roth conversions
- Larger RMDs eventually: Starting later means larger RMDs when they start
- Plan accordingly: Use extra time strategically
Key Takeaways:
- RMD age is 73 in 2026: For those born 1951 or later
- Will increase to 75 in 2033: For those born 1960 or later
- More time for growth: Tax-deferred growth continues longer
- More conversion opportunities: More years for Roth conversions
- Larger RMDs eventually: Account grows longer, RMDs may be larger
- Plan early: Don't wait until RMD age to plan
- Use time strategically: Roth conversions, withdrawal planning
Action Steps:
- Know your RMD age (73 for most in 2026)
- Understand future changes (75 in 2033)
- Use extra time for tax-deferred growth
- Plan Roth conversions before RMDs start
- Plan withdrawal strategy in advance
- Don't wait until RMD age to plan
- Review strategy annually
- Work with professional if needed
Remember: RMD age changes give you more time before forced distributions, but use that time strategically. Plan Roth conversions, manage your tax brackets, and prepare for RMDs before they start. The key is starting early and using the extra time wisely.
