Required Minimum Distributions (RMDs) in 2026: What Scottsdale Retirees Should Know
The current RMD age, how to calculate, the 25% penalty for missing one, and the planning windows that matter most for Arizona retirees.
Required Minimum Distributions are the IRS's way of finally collecting tax on the money you've deferred for decades. Miss one and the penalty is steep — but with a little planning, RMDs can be one of the most predictable parts of your retirement.
The basics for 2026
- RMDs currently begin at age 73 (rising to 75 for those born in 1960 or later).
- They apply to Traditional IRAs, 401(k)s, 403(b)s, and most other tax-deferred accounts. Roth IRAs are exempt during your lifetime.
- The annual amount is your prior year-end balance divided by an IRS life-expectancy factor.
- Miss it and the penalty is 25% of the amount not taken — reduced to 10% if corrected promptly.
The planning window people often miss
The years between retirement and your first RMD are often the most valuable tax-planning years of your life. Your income is typically lower, your tax brackets are wider, and you have control over what comes out and when. Strategic Roth conversions in this window can potentially reduce future RMDs, future IRMAA Medicare surcharges, and the tax burden on a surviving spouse who will file as single.
Qualified Charitable Distributions
If you give to charity and are 70 1/2 or older, sending the gift directly from your IRA — up to $111,000 in 2026, indexed for inflation — counts toward your RMD and is excluded from your income. It is one of the most efficient charitable strategies available.
A simple checklist
- Confirm which accounts have RMDs and which do not.
- Set automatic distributions so you cannot miss the deadline.
- Review whether Roth conversions before age 73 make sense for you.
- Coordinate RMDs with charitable giving, capital gains, and Social Security taxation.
Frequently asked
Questions Scottsdale retirees ask us
- At what age do RMDs start in 2026?
- Required Minimum Distributions currently begin at age 73. For anyone born in 1960 or later, the starting age rises to 75 under the SECURE 2.0 Act.
- What is the penalty for missing an RMD?
- The IRS penalty is 25% of the amount that should have been withdrawn but wasn't. That penalty drops to 10% if the missed distribution is corrected promptly, typically within two years.
- Do Roth IRAs have required minimum distributions?
- Roth IRAs are not subject to RMDs during the original owner's lifetime, which is one reason many Scottsdale retirees consider Roth conversions in the low-income years between retirement and age 73.