3 Required Minimum Distribution (RMD) Rule Changes You Need to Know in 2026
Retirees with tax-deferred retirement accounts should understand how required minimum distributions (RMDs) work.
Overview
Required minimum distributions (RMDs) are mandatory annual withdrawals from tax-deferred retirement accounts, such as 401(k) plans and traditional individual retirement accounts (IRAs). The IRS enforces RMDs to ensure income tax is eventually paid on contributions and any gains that were allowed to grow in a tax-free environment.
RMD rules change periodically due to legislative updates. For instance, the Secure 1.0 Act (passed in 2019) increased the age at which RMDs begin and introduced a mandatory 10-year liquidation rule for retirement accounts inherited by non-spouse beneficiaries.
Details
Similarly, the Secure 2.0 Act (passed in 2022) once again increased the age at which RMDs begin, exempted Roth 401(k) plans from RMDs during the original account holder's lifetime, and reduced the excise tax penalty charged when someone fails to complete an RMD on time.
Source
Originally published at www.fool.com.
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