Taking Your First RMD in 2026? Here's Why You Should Start It Now
Key Points
You have until April 1, 2027, to take your 2026 RMD if you're turning 73 this year.
Spacing out your RMDs could reduce the risk that you'll need to make a big withdrawal when your investments are down.
Your RMDs are based on your account balance as of Dec. 31, 2025.
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If you're turning 73 in 2026, you'll have a new responsibility to contend with this year: required minimum distributions (RMDs). These are mandatory annual withdrawals you must take from all tax-deferred retirement accounts going forward.
Technically, you have until April 1, 2027, to take your 2026 RMD since it's your first year. But there's a good reason not to wait that long, especially if you expect your 2026 RMDs to be large. Here's why you may want to get started on them now.
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Why you might want to spread out your 2026 RMD starting now
There's no legal reason you need to start taking your 2026 RMDs now, but it could be wise if you're worried about market volatility over the coming months. RMDs can be tens of thousands of dollars for some people, and you may not want to withdraw a sum that large all at once.
If you wait until right before the deadline and your investments are down, you'll have to sell a lot more stocks to meet your RMD. That leaves less remaining in your account to cover your future expenses.
But if you spread your RMD out over the next several months, you reduce this risk. If your investments are down just before the RMD deadline, you may only have to withdraw a small amount at that time, or you may not have to withdraw anything at all if you complete your 2026 RMD by December.
You should note that if you wait until 2027 to take your 2026 RMD, you will have to take two RMDs next year. If this concerns you, consider dividing this year's RMD among the remaining six months of the year so you can begin with your 2027 RMD in January.
How to calculate your 2026 RMDs
The amount of your RMDs will depend on your retirement account balances as of Dec. 31, 2025. Check with your plan administrator if you're not sure what these were. Remember, you don't need to take RMDs from Roth accounts or your current 401(k) if you're still employed and own less than 5% of the company.
For accounts that require RMDs, you'll divide each retirement account balance by 26.5, the applicable denominator for 73-year-olds from the IRS's Uniform Lifetime Table. The result is the amount you must withdraw.
You may have already taken some of your RMD this year. Subtract your year-to-date withdrawals from your RMD for that account to figure out how much you still have to withdraw from each one.
Then decide how you'll space your withdrawals for the rest of the year. Create reminders for yourself, or set up automatic transfers from your IRA or 401(k) so you don't have to remember to withdraw the money manually each time.
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