Understanding RMD Age Changes Under Secure 2.0: What Retirees Need to Know

2026-01-12 19:02:04

Overview: How RMD Age Changes Affect Your Retirement Account

If you’re approaching retirement or already retired, understanding required minimum distribution (RMD) rules is critical to your financial planning. The Secure 2.0 Act, passed in 2022, made significant changes to when you must begin taking distributions from tax-deferred retirement accounts like traditional IRAs and 401(k)s. These RMD age changes have shifted the landscape for millions of Americans, and failing to comply can result in substantial penalties.

The Evolution of RMD Age Requirements

The timeline for when RMDs kick in has shifted multiple times in recent years. Originally, retirees had to begin distributions at age 70½. The Secure 1.0 Act pushed that age to 72 for those born on or after July 1, 1949. Now, under the Secure 2.0 Act, the RMD age changes have increased the threshold further.

Current RMD Age Changes by Birth Date:

Birth Date	RMD Age Requirement
Before July 1, 1949	Age 70½
July 1, 1949 – Dec. 31, 1950	Age 72
Jan. 1, 1951 – Dec. 31, 1959	Age 73
After Dec. 31, 1959	Age 75

These RMD age changes mean individuals born between 1951 and 1959 must now begin distributions at 73 rather than 72. Those born after 1959 won’t face RMDs until age 75—a significant deferral that could impact long-term financial strategies.

How RMD Age Changes Apply to Different Account Types

Once you reach your required age, RMD rules apply to traditional 401(k)s, traditional IRAs, SEP IRAs, and SIMPLE IRAs. However, the Secure 2.0 Act introduced an important exception: Roth 401(k)s and Roth 403(b)s are now exempt from RMD age changes and distribution requirements. This represents a major shift for Roth account holders, though beneficiaries of these accounts are still subject to RMD obligations.

Timeline for Taking Your First Distribution

Understanding when to take your first distribution is crucial. Typically, all RMDs must be completed by December 31st of each year. However, the first distribution has a special grace period: you can delay it until April 1st of the following year.

Here’s a practical example: Sarah turned 73 in 2025. She can choose to delay her first mandatory distribution until April 1, 2026. However, she must complete her second distribution by December 31, 2026, and every subsequent distribution by December 31st each year.

What the RMD Calculation Actually Entails

Your RMD amount is calculated by taking your account balance from December 31st of the prior year and dividing it by a life expectancy factor. The IRS provides three tables to determine which factor applies:

Uniform Lifetime Table: Used by most account owners (applies when spouse is not the sole beneficiary, or is the sole beneficiary but not more than 10 years younger)
Joint and Last Survivor Table: Used when spouse is sole beneficiary and is more than 10 years younger
Single Life Expectancy Table: Used by beneficiaries calculating distributions

Accurate calculation is essential because miscalculations can trigger penalties.

Penalties for Missing RMD Deadlines Have Been Reduced

One of the most significant benefits of the Secure 2.0 Act’s RMD age changes is the reduction in noncompliance penalties. Previously, the IRS could impose excise taxes as high as 50% of the amount not withdrawn. Under the new rules, the penalty has been slashed to 25%.

Additionally, if you correct the shortfall within two years, the penalty drops further to just 10%. If you can demonstrate the error was reasonable and unintentional, you may request a complete penalty waiver by submitting Form 5329 with a written explanation to the IRS.

Key Takeaways on RMD Age Changes

The RMD age changes introduced by Secure 2.0 provide relief for many retirees by extending the timeline before distributions must begin. For those born between 1951 and 1959, understanding that your RMD age is now 73—not 72—is essential. Mark your calendar for December 31st deadlines, use the correct life expectancy table for your calculation, and remember that correcting errors promptly can significantly reduce penalties. Given the complexity of these rules and the frequency of legislative updates, consulting with a financial advisor about your specific situation is advisable.

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