RMDs in 2026: What's Actually New (and What Isn't) for High-Income Retirees

If you're a high-income retiree trying to plan around required minimum distributions, it's worth being precise about which SECURE 2.0 changes are actually new this year and which ones have already been in effect for a while. Several widely-repeated claims about "2026 RMD changes" are actually describing rules that took effect years ago — while a genuinely new 2026 change affecting high earners has gotten less attention.

What's Actually Old News

Two changes people sometimes describe as new for 2026 have actually been law for years:

• The RMD age is 73 — and has been since 2023. SECURE 2.0 raised the starting age from 72 to 73 for anyone who turned 72 after December 31, 2022. It's scheduled to rise again to 75, but not until 2033 (Greenbush Financial Group). If you're just now learning your RMD age is 73, that's been true for a few years, not a new 2026 development.
• Roth 401(k) and Roth 403(b) accounts have been RMD-free since 2024. SECURE 2.0 eliminated required minimum distributions from designated Roth accounts in employer plans starting with distributions required for 2024 and later, bringing them in line with Roth IRAs (Ed Slott and Company). This is also not new for 2026.

Getting these dates right matters because if you've been delaying planning under the assumption these are brand-new 2026 rules, you may already be behind.

What's Genuinely New in 2026

The real high-earner-relevant change this year is the mandatory Roth catch-up contribution rule. Starting January 1, 2026, workers 50 or older who earned more than $150,000 in FICA wages in the prior year must make any 401(k) catch-up contributions on a Roth (after-tax) basis rather than pre-tax — a real shift from the prior rule, which let participants choose either (Quarles Law Firm). For 2026, the base 401(k) contribution limit (402(g) limit) is $24,500, the standard catch-up for those 50+ is $8,000, and the "super catch-up" for ages 60-63 remains $11,250, for a maximum possible contribution of $35,750. This mandate affects high-income earners who are still working, not those already taking RMDs, but it's directly relevant to the retirement-planning window many high earners are in during their final working years.

How to Actually Calculate Your RMD

The mechanics haven't changed: you take your traditional IRA, 401(k), 403(b), and other tax-deferred account balances as of December 31 of the prior year, then divide by the IRS Uniform Lifetime Table divisor for your age. At age 73, that divisor is 26.5. For example, a $1,850,000 combined balance divided by 26.5 works out to an RMD of roughly $69,811 for the year. That's the floor — you can withdraw more if you need the cash or want to manage your tax bracket, but not less.

The Penalty for Missing an RMD

SECURE 2.0 did meaningfully soften the penalty for a missed RMD, cutting it from 50% of the shortfall to 25%, with a further reduction to 10% if the mistake is corrected within a defined correction window (generally by the end of the second year following the year the RMD was due, and before the IRS assesses the tax). That's real relief compared to the old rules, even though it isn't a brand-new-for-2026 change either — it's been in effect since 2023.

Strategies Worth Considering

A few approaches remain genuinely useful for high-income retirees managing RMDs:

• Qualified charitable distributions (QCDs). You can direct IRA funds straight to a qualified charity, and the amount counts toward your RMD without being included in taxable income. The QCD limit is inflation-indexed and sits at $111,000 per individual for 2026 (up from $108,000 in 2025), or up to $222,000 for a married couple who both make QCDs from their own IRAs (USTax Tools).
• Roth conversions before RMDs begin. Converting traditional IRA funds to a Roth IRA before age 73 reduces the balance subject to future RMDs. The conversion itself is taxable, so many people spread conversions over several years to avoid jumping into a higher bracket in any single year.
• Tax withholding at the source. You can elect to have taxes withheld directly from an RMD, which for many high-income retirees is simpler than making quarterly estimated payments, though it offers less flexibility to fine-tune throughout the year.
• Coordinating with Medicare IRMAA. Medicare Part B and Part D premiums are based on modified adjusted gross income from two years prior, so a large RMD (or a large Roth conversion) can push you into a higher premium bracket two years later. Planning conversions or large distributions with that two-year lag in mind can meaningfully reduce future Medicare costs.

FAQ

Is the RMD age really changing in 2026? No. The RMD age has been 73 since 2023. It's scheduled to rise to 75 starting in 2033, not 2026.

Are Roth 401(k)s newly exempt from RMDs in 2026? No — that exemption took effect for 2024 and later years, not 2026.

What retirement change actually is new in 2026? Workers 50 or older who earned over $150,000 in FICA wages the prior year must now make 401(k) catch-up contributions on a Roth basis rather than pre-tax, starting January 1, 2026.

What's the correct divisor for calculating an RMD at age 73? 26.5, per the IRS Uniform Lifetime Table.

What's the 2026 QCD limit? $111,000 per individual, up from $108,000 in 2025, since the QCD limit is now indexed to inflation. A married couple can potentially exclude up to $222,000 if both spouses make QCDs from their own IRAs.

What happens if I miss my RMD deadline? The penalty is 25% of the shortfall, reduced to 10% if corrected within the IRS's defined correction window — a substantial improvement from the 50% penalty that applied before SECURE 2.0, though that change took effect in 2023, not 2026.