IRA Distribution Update for 2026

At Allgood Financial, based in the Nashville, TN area, our mission is to help clients “do all good things,” and that means keeping you informed and prepared through every stage of retirement planning. As we approach 2026, it’s more important than ever to understand the latest rules for individual retirement accounts (IRAs), required minimum distributions (RMDs), and how recent law changes could affect your retirement income strategy. 

What’s Changed —and What’s Staying the Same 

RMD Age Reminder: 73 (for now) 

Under recent law—particularly the SECURE 2.0 Act—the age at which you must begin taking required minimum distributions (RMDs) from traditional IRAs, SEP IRAs and SIMPLE IRAs was raised to 73, starting in 2023. (Source: IRS) 

That means for 2026: 

• If you turn 73 in 2026, your first RMD must be taken by April 1, 2027.
• If you turned 73 in a prior year, your subsequent RMDs must continue by December 31 each year. 

Some planning essentials remain the same: 

• RMDs apply to traditional IRAs, SEP IRAs, SIMPLE IRAs, and employer-based retirement plans (401(k), 403(b), 457(b)).
• Roth IRAs are not subject to RMDs during the original owner’s lifetime. 

Regulatory Updates & Delays: What to Know in 2026 

In September 2024, the Internal Revenue Service (IRS) issued final regulations implementing many RMD-related provisions for calendar years beginning on or after January 1, 2025. 

However, the IRS has delayed the effective date of some of the proposed regulations until 2026. 

What does that mean in practice for 2026? 

• Account holders should closely monitor communications from their plan administrators or IRA custodians. Because of the delay, some RMD-related provisions previously proposed but not yet finalized may come into effect.
• While the basic RMD age and deadline framework remains intact, there could be shifts in how the rules are administered or calculated depending on what the delayed regulations cover. 

As always, if you receive any notice or communication about changes in your IRA or retirement-plan requirements, or if your personal situation (marriage, beneficiaries, working status) changes, give us a call so we can help you interpret what it means for you. 

How to Calculate Your 2026 RMD — and Why It Matters 

Here’s a quick refresher (and some important reminders) on how to calculate your RMD: 

• For 2026, your RMD will be based on the December 31, 2025 value of your IRA or retirement-plan account.
• Use the life-expectancy factor from the correct table in IRS Publication 590-B:
• Most account holders will use the “Uniform Lifetime Table” (Table III).
• If your spouse is your sole beneficiary and more than 10 years younger, then the “Joint Life and Last Survivor Expectancy” table (Table II) applies. 

Why it matters: Taking the correct RMD on time helps you avoid costly penalties, keeps your retirement plan compliant, and ensures a smooth transition into the income-distribution phase of retirement. 

What’s New in 2026 — Planning Implications 

Proposed RMD-Rule Changes Could Become Active 

Because of the IRS’s delayed effective date, there’s a possibility that in 2026 we’ll see some of those previously proposed regulations become binding. While we don’t yet know exactly which ones will take effect and for whom, it’s a strong reason to stay vigilant. 

At Allgood Financial, we recommend reviewing your IRA and retirement-plan statements as soon as they arrive for 2025 and comparing them to a 2026 RMD projection. If anything looks different, reach out immediately so we can help. 

What This Means for Taxes, Retirement Cash Flow & Estate Planning 

• Tax planning becomes more critical. Since RMDs are generally taxable as ordinary income, an unexpected increase (or rule change) could shift your tax bracket for 2026. That, in turn, could affect your take-home Social Security benefits, Medicare premiums, and eligibility for certain tax credits.
• Flexibility still matters. Even though RMDs are mandatory, you have options. Some individuals take their RMD earlier in the year. Others—depending on their cash-flow needs—may choose to invest part of the RMD in a taxable account or use it for charitable giving (if eligible).
• Estate and legacy planning must remain proactive. If you have a spouse or intend to pass IRA assets to heirs, the rules (especially for beneficiaries) can affect how and when those funds are distributed. 

Practical Checklist — What You Should Do Ahead of 2026 

1. Review your age and birth date. Confirm when you're scheduled to begin RMDs (if you haven’t started already).
2. Watch for IRS or custodian notices. Changes delayed from 2025 may now apply.
3. Estimate your 2026 RMD now. Use your December 31, 2025 estimated balance to project your RMD and potential tax impact.
4. Coordinate with your tax advisor or us. Determine whether it makes sense to withdraw earlier, spread distributions, or employ strategies such as Qualified Charitable Distributions (QCDs) if applicable.
5. Revisit estate/beneficiary designations. Especially if you have a spouse or anticipate passing on assets — make sure beneficiary designations, spousal elections, and planning align with rule changes. 

Allgood Financial Is On Your Team