Utah · Retirement Income · 2026 Rules
Required Minimum Distributions in 2026: A Utah Guide to Age 73, the 25% Penalty & QCDs
The IRS lets you defer taxes on retirement savings. It doesn't let you defer them forever.
The bottom line
- RMDs begin at age 73 — age 75 if you were born in 1960 or later (SECURE 2.0).
- Your RMD = last December 31's balance ÷ your IRS life-expectancy factor. At 73 that factor is 26.5, so a $500,000 IRA owes about $18,868.
- Miss one and the excise tax is 25% of the shortfall — 10% if you fix it within two years (IRS).
- Roth IRAs have no lifetime RMDs. And a qualified charitable distribution (up to $111,000 in 2026) can satisfy an RMD without adding to your taxable income.
If you spent your working years in Salt Lake City, Provo, or anywhere along the Wasatch Front dutifully filling a 401(k), you made a deal with the IRS: skip the tax now, pay it later. Required minimum distributions are "later" arriving. Starting the year you turn 73, the government requires you to pull a set amount out of your tax-deferred accounts every year — and pay income tax on it — whether you need the money or not.
The rules are not complicated, but the penalty for ignoring them is steep, and the tax bill can quietly push a Utah household into a higher bracket or trigger higher Medicare premiums. Here's how RMDs actually work in 2026.
When do RMDs start?
You generally must begin withdrawing from a traditional IRA, SEP IRA, SIMPLE IRA, 401(k), 403(b), or 457(b) in the year you reach age 73. The SECURE 2.0 Act pushed the age from 72 to 73, and it moves again to 75 for anyone born in 1960 or later.
Two wrinkles worth knowing:
- The April 1 grace period. Your first RMD can be delayed until April 1 of the following year — but your second is still due by December 31 of that same year. Two taxable withdrawals in one year is often a worse outcome than simply taking the first one on time.
- The "still working" exception. If you're still employed and not a 5% owner of the business, you can generally delay RMDs from that employer's plan until you retire. It does not apply to IRAs — those start at 73 regardless.
Sources: IRS, Retirement plan and IRA required minimum distributions FAQs — irs.gov; IRS Notice 2025-67, 2026 amounts relating to retirement plans and IRAs — irs.gov (PDF).
How is an RMD calculated?
It's one division problem. Take your account balance on December 31 of the prior year and divide it by the life-expectancy factor for your age from the IRS Uniform Lifetime Table (Table III in Publication 590-B). Most people use that table; you'd use the Joint and Last Survivor table instead if your spouse is your sole beneficiary and more than 10 years younger.
The factor shrinks each year, so the required percentage of your account rises as you age. Here's what that looks like on a $500,000 balance:
| Your age | IRS life-expectancy factor | RMD on a $500,000 balance |
|---|---|---|
| 73 | 26.5 | $18,868 |
| 75 | 24.6 | $20,325 |
| 80 | 20.2 | $24,752 |
| 85 | 16 | $31,250 |
| 90 | 12.2 | $40,984 |
Factors: IRS Uniform Lifetime Table (Table III), Publication 590-B — irs.gov/publications/p590b. Dollar figures are our calculation (balance ÷ factor) and are illustrative only.
Required minimum distribution on a $500,000 prior-year balance, by age. Factors from the IRS Uniform Lifetime Table (Publication 590-B).
Which accounts have RMDs — and which don't?
| Account | Lifetime RMD? |
|---|---|
| Traditional IRA, SEP IRA, SIMPLE IRA | Yes — starting at 73, even if you're still working |
| 401(k), 403(b), 457(b) | Yes — but you may delay while still working for that employer (if not a 5% owner) |
| Roth IRA | No — none during the owner's lifetime |
| Designated Roth 401(k) / 403(b) | No — lifetime RMDs no longer apply |
| Inherited IRA or Roth IRA | Yes — beneficiaries have their own rules (often a 10-year window) |
Source: IRS RMD FAQs — irs.gov.
One easy-to-miss detail: if you own several IRAs, you calculate the RMD for each one but may take the total from any one of them. 401(k)-type plans don't work that way — each plan's RMD must come out of that plan.
What happens if you miss one?
The amount you should have withdrawn but didn't may be hit with a 25% excise tax. If you catch it and correct the shortfall within two years, that drops to 10%. You report the shortfall on Form 5329, and the IRS may waive the tax entirely if the miss was a reasonable error and you're taking steps to fix it — attach a letter of explanation.
Also worth knowing: you can always take more than the minimum, but an extra withdrawal in one year does not count toward a future year's RMD, and an RMD can never be rolled over into another tax-deferred account.
The tax side — federal, Utah, and Medicare
An RMD from a traditional account is ordinary income. Three consequences Utah retirees should plan around:
1. Your federal bracket
A large RMD stacks on top of Social Security, pension, and interest income. It can also increase how much of your Social Security benefit is taxable.
2. Utah state income tax
Utah taxes retirement-account withdrawals at its flat state income tax rate — 4.5% for tax year 2025 per the Utah State Tax Commission (confirm the current year's rate before you file). Utah's retirement and Social Security credits may offset part of the bill depending on your income.
3. Medicare IRMAA
Medicare uses your tax return from two years ago to set Part B and Part D premiums. A one-off large withdrawal at 73 can raise your premium at 75. Sequencing withdrawals across years is often what keeps a household under the next threshold.
Three ways Utah households soften the RMD bill
Qualified charitable distributions (QCDs)
From age 70½, you can send money directly from your IRA to a qualified charity. The gift can count toward your RMD and is excluded from your taxable income — up to $111,000 per person in 2026 (IRS Notice 2025-67). Because it never lands on your return, it can also help with Social Security taxation and IRMAA. You can't deduct it as a charitable contribution too — it's one or the other.
Roth conversions before 73
The years between retiring and turning 73 are often the lowest-income years of a lifetime. Converting some traditional savings to a Roth in those years means paying tax at today's rate and shrinking the balance that future RMDs are calculated on. It raises this year's tax bill, so the math has to be run with a tax professional.
Withdrawing on purpose, not on deadline
Taking a planned amount each year — rather than a lump at year end — makes the income predictable, keeps withholding simple, and makes it far less likely you'll cross a bracket or an IRMAA line by accident.
We help Utah households line up Social Security, withdrawals, and care costs — in plain English, with no pressure.
Talk to a planner →Frequently asked questions
At what age do RMDs start in 2026?
Age 73 for most people. Under the SECURE 2.0 Act, the starting age rises to 75 for people born in 1960 or later. You can delay your very first RMD until April 1 of the year after you turn 73 — but then you'd take two RMDs in that year (IRS).
How is my RMD calculated?
Take your account balance as of December 31 of the prior year and divide it by the life-expectancy factor for your age in the IRS Uniform Lifetime Table (Table III in Publication 590-B). At 73 the factor is 26.5, so a $500,000 IRA produces an RMD of about $18,868.
What is the penalty for missing an RMD?
The amount you failed to withdraw may be subject to a 25% excise tax — reduced to 10% if you correct the shortfall within two years. You report it on IRS Form 5329, and the IRS can waive the tax if the shortfall was a reasonable error and you're fixing it.
Do Roth accounts have RMDs?
Roth IRAs have no required distributions during the owner's lifetime, and designated Roth accounts in a 401(k) or 403(b) are no longer subject to lifetime RMDs either. Beneficiaries who inherit Roth accounts do face RMD rules (IRS).
Can I give my RMD to charity instead?
If you're at least 70½, a qualified charitable distribution (QCD) sends money directly from your IRA to a qualified charity. It can count toward your RMD and is excluded from your taxable income — up to $111,000 per person in 2026 (IRS Notice 2025-67). You can't also deduct it as a charitable contribution.
Are RMDs taxed in Utah?
Yes. A withdrawal from a traditional IRA or 401(k) is ordinary income federally and is also taxed by Utah at its flat state income tax rate (4.5% for tax year 2025 — confirm the current rate with the Utah State Tax Commission). Utah's retirement credit may offset part of it depending on your income.
Sources
- IRS — Retirement plan and IRA required minimum distributions FAQs: irs.gov/retirement-plans/…rmd-faqs
- IRS — Retirement topics: Required minimum distributions (RMDs): irs.gov/retirement-plans/…rmds
- IRS Publication 590-B — Uniform Lifetime Table (Table III): irs.gov/publications/p590b
- IRS Notice 2025-67 — 2026 amounts relating to retirement plans and IRAs (QCD limit): irs.gov/pub/irs-drop/n-25-67.pdf
- IRS Form 5329 — Additional taxes on qualified plans (including IRAs): irs.gov/forms-pubs/about-form-5329
- Congressional Research Service — RMD rules for original owners of retirement accounts: congress.gov/crs-product/IF12750
- Utah State Tax Commission — income tax rates: incometax.utah.gov/paying/tax-rates
About this article. Written by the Utah Retirement Income Data Desk and reviewed by Brian Penner, Retirement income & long-term care planner. Educational only — not financial, tax, or legal advice; consult a qualified tax professional about your own situation. Dollar examples are illustrative calculations, not projections. Utah Retirement Income is a licensed independent insurance agency (NPN 16493717) and is not a government agency or connected with or endorsed by the IRS, Medicare, or Medicaid. Insurance and annuity guarantees are subject to the claims-paying ability of the issuing company; there are no guaranteed investment returns.