Required Beginning Date: What It Is and Why It Matters

Definition

The Required Beginning Date (RBD) is the absolute deadline by which an individual must take their very first Required Minimum Distribution (RMD) from most tax-deferred retirement accounts. This date is generally April 1st of the year after the year you reach the specific age threshold for RMDs.

How It Works

The concept of the Required Beginning Date is a cornerstone of retirement withdrawal rules set by the IRS. For decades, you contribute to accounts like a Traditional IRA or 401(k), and that money grows tax-deferred. The government eventually wants to collect taxes on that money, which is why it mandates withdrawals, known as RMDs.

The RBD marks the start of this mandatory withdrawal phase. The specific age that triggers RMDs was updated by the SECURE 2.0 Act. Your age is determined by your birth year:

• Born between 1951 and 1959: You must begin RMDs in the year you turn 73.
• Born in 1960 or later: You must begin RMDs in the year you turn 75.

Your Required Beginning Date is April 1 of the calendar year following the year you reach that age. For example, if you were born in 1953 and turn 73 in 2026, your RBD is April 1, 2027.

A critical point to understand is that while you can delay your first RMD until this April 1 deadline, all subsequent RMDs must be taken by December 31 of each year. If you choose to delay that first payment, you will be required to take two RMDs in the same year: the first (for the year you turned 73 or 75) by April 1, and the second (for the current year) by December 31. This "doubling up" can have significant tax consequences by pushing you into a higher income tax bracket.

There is a notable exception to this rule known as the "still-working exception." If you are still employed past your RMD age and participate in your current employer's 401(k) or similar plan, you may be able to delay RMDs from that specific plan until April 1 of the year after you retire. This exception does not apply to Traditional IRAs, SEP IRAs, or 401(k) plans from previous employers, and you cannot be a 5% or more owner of the business.

Key Rules and Limits

Here are the essential rules and regulations for 2026:

• RMD Age Thresholds: The age to begin RMDs is 73 for individuals born from 1951 to 1959 and will be 75 for those born in 1960 or later.
• First RMD Deadline (RBD): Your first RMD must be taken no later than April 1 of the year after you reach your RMD age.
• Subsequent RMD Deadline: All RMDs after your first one are due by December 31 of each year.
• Accounts Subject to RMDs: The rules apply to Traditional IRAs, SEP IRAs, SIMPLE IRAs, 401(k)s, 403(b)s, and most other tax-deferred retirement plans.
• Accounts Exempt from RMDs (for the owner): Roth IRAs do not have RMDs during the original owner's lifetime. As of 2024, thanks to the SECURE 2.0 Act, Roth 401(k) accounts are also exempt from RMDs for the original owner.
• Penalty for Missed RMDs: The penalty for failing to take a timely RMD is 25% of the amount that was not withdrawn. This penalty can be reduced to 10% if the mistake is corrected within a two-year window.

Example

Let's consider a retiree named Susan, who was born in May 1953.

• RMD Age: Susan turns 73 in May 2026. The year 2026 is her first RMD year.
• Required Beginning Date: Her RBD is April 1, 2027.

Susan has two choices for her first RMD, which is calculated based on her retirement account balance on December 31, 2025:

1. Option 1 (Take it in 2026): She can take her first RMD anytime during 2026, with a deadline of December 31, 2026. Her next RMD (for the 2027 tax year) would then be due by December 31, 2027. This spreads her taxable RMD income across two separate years.
2. Option 2 (Delay to the RBD): She can delay her first RMD until her Required Beginning Date of April 1, 2027. However, she must also take her second RMD (for the 2027 tax year) by December 31, 2027. This means she would report the income from two RMDs on her 2027 tax return, which could significantly increase her tax liability for that year.

Pros and Cons

This section applies to the decision of whether to delay your first RMD until the April 1st Required Beginning Date.

Pros of Delaying to April 1st:

• More Time for Growth: It allows the funds designated for your first RMD to remain in the tax-deferred account for an extra three months, potentially benefiting from additional market growth.

Cons of Delaying to April 1st:

• Potential for a Higher Tax Bracket: Taking two RMDs in a single calendar year can substantially increase your adjusted gross income (AGI), possibly pushing you into a higher tax bracket and causing you to pay a larger percentage of your income in taxes.
• Impact on Medicare Premiums: A higher AGI can lead to increased Medicare Part B and Part D premiums through the Income-Related Monthly Adjustment Amount (IRMAA).
• Increased Taxation of Social Security: A higher AGI could also cause a larger portion of your Social Security benefits to become taxable.

Common Mistakes to Avoid

• Misunderstanding the Age Trigger: With recent changes from the SECURE 2.0 Act, it's crucial to know your correct RMD age based on your birth year.
• Forgetting the Second RMD: If you delay your first RMD to April 1, do not forget you must take a second RMD by December 31 of that same year.
• Misapplying the 'Still-Working' Exception: This exception only applies to the 401(k) or retirement plan of your current employer. It does not allow you to delay RMDs from Traditional IRAs or plans from former employers.
• Missing the Deadline: Forgetting the deadline can result in a steep 25% penalty on the amount you failed to withdraw. Setting up automatic withdrawals with your financial institution can help prevent this.

Frequently Asked Questions

Q: What happens if I miss my Required Beginning Date?

A: If you fail to take your first RMD by the April 1st deadline, you will be subject to an IRS penalty of 25% of the RMD amount you should have withdrawn. This penalty can be reduced to 10% if you withdraw the required amount and file a corrected tax return within two years.

Q: Do Roth IRAs have a Required Beginning Date?

A: No. Roth IRAs are not subject to Required Minimum Distributions during the original owner's lifetime, so there is no Required Beginning Date. However, beneficiaries who inherit Roth IRAs are subject to different distribution rules, often requiring the account to be emptied within 10 years of the original owner's death.

Q: I'm still working at age 74. Can I delay RMDs from my old 401(k) and my Traditional IRA?

A: No. The "still-working" exception is specific to the plan of your current employer. You must still take RMDs from your Traditional IRAs (including SEP and SIMPLE IRAs) and any 401(k) or 403(b) plans you have with former employers, starting at your RMD age.

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This article reflects 2026 rules and limits. Tax laws and financial regulations change — consult a qualified financial advisor or visit IRS.gov for the latest information.