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What are the exact IRS changes to RMD age and calculation for 2026?
Executive summary
The IRS has delayed the effective date for certain proposed and final RMD regulations so those provisions will not apply earlier than the 2026 distribution calendar year; taxpayers should therefore expect the key regulatory clarifications (including fixes for people born in 1959 and certain spousal/beneficiary rules) to be applied starting January 1, 2026 (IRS Announcement summarized by Groom Law/Groom and Grant Thornton) [1] [2]. Meanwhile, the statutory RMD age is 73 now (for people who reach the trigger in 2023–2032) with the ability to delay a first RMD until April 1 of the year after you reach that age and RMD amounts continue to be calculated by dividing the prior‑year Dec. 31 account balance by an IRS life‑expectancy factor [3] [4].
1. What the IRS formally delayed — and why it matters
The IRS announced that certain proposed regulations that implement SECURE Act changes to Code section 401(a)[5] will not apply until the 2026 distribution calendar year; industry groups and commenters told the IRS some provisions would be hard to implement on the original 2025 timetable, so the agency extended the anticipated applicability date to Jan. 1, 2026 [1] [2]. That delay means plan sponsors, recordkeepers and taxpayers have more time to prepare for regulatory detail changes (for example around spousal elections, applicable ages for birth‑year cohorts, and QLAC treatment) that were in the proposed/final rule package [1] [6].
2. The statutory RMD age that currently applies
Under the statutes reflected in IRS FAQs and guidance, required minimum distributions generally begin when an account owner reaches age 73 (for most people whose trigger dates fall in the post‑SECURE1.0 window) — you must start taking RMDs in the year you reach 73, with plan‑specific exceptions for working participants in employer plans [3] [7]. SECURE 2.0 further phases the age to 75 starting in 2033, but the present operative age for most taxpayers remains 73 [6] [8].
3. Timing: first RMD vs. subsequent RMDs — the practical effect for 2025/2026
If you reach RMD age in a calendar year, you generally can delay your first distribution until April 1 of the next year; that one‑time deferral means someone who turns 73 in 2025 may wait until April 1, 2026 to take the 2025 RMD, but they must still take the 2026 RMD by Dec. 31, 2026 — resulting in two taxable distributions in 2026 if they delay (illustrated repeatedly in IRS guidance and multiple advisories) [9] [10] [11].
4. How RMDs are calculated — unchanged mechanics in current guidance
The calculation method remains: determine the account’s fair market value on Dec. 31 of the prior year and divide that balance by the applicable life‑expectancy factor from one of the IRS tables (Uniform, Joint and Last Survivor, or Single Life) to produce the RMD for the tax year [4] [12]. Firms and calculators reiterate that for age 73 the Uniform Lifetime Table factor (and resulting percentage) is applied to the Dec. 31 prior‑year balance [12] [4].
5. Key clarifications coming in the delayed regulations (what to watch for in 2026)
The proposed/final rule set addresses several substantive items: clarifying the correct starting age for people born in 1959 (the IRS proposal confirmed age 73 for that cohort), proposed default rules for surviving spouses who can elect life‑expectancy RMD treatment versus the 10‑year rule, QLAC (qualified longevity annuity contract) rules, and implementation details tied to SECURE 1.0 and 2.0 changes — these provisions are the ones slated for applicability in the 2026 distribution year per the IRS extension [6] [1] [2].
6. Practical takeaways and opposing perspectives
Practical takeaway: don’t assume new regulatory clarifications will govern 2025 distributions — the IRS told the industry to rely on reasonable, good‑faith interpretations until the 2026 applicability date [1] [6]. Some advisers emphasize that taxpayers should still plan now — especially those turning 73 in 2025 who face the April 1/Dec. 31 double‑distribution issue — while recordkeepers welcome more time to update systems [9] [1]. Alternative viewpoint: industry comment letters argued that delay was necessary because the proposed rules were operationally complex and rushed; advocates for faster implementation counter that clarity should come sooner to reduce taxpayer uncertainty [2] [6].
7. Limitations and what the available sources do not say
Available sources do not mention any IRS announcement that fundamentally changes the statutory age of RMD onset beyond the age‑73 rule or the SECURE 2.0 phase‑in to 75; they also do not provide final text of every regulatory amendment that will apply in 2026 — only summaries and the IRS announcement extending the applicability date [1] [2]. For precise calculations, life‑expectancy factors and the final regulatory language when issued, consult the IRS webpages and Publication 590‑B when updated [7] [3].
If you want, I can extract the specific life‑expectancy table factors for age 73 and show an example RMD calculation using your account balance and birth year; say your Dec. 31 balance and I’ll compute both the 2025 and 2026 RMD scenarios (delay vs. no delay) using the tables cited in current guidance [12] [4].