Clearing Up the SECURE 2.0 Confusion: Is Your Required Minimum Distribution Age 73 or 75?

Congress, in regulating the tax treatment of certain retirement plans, has changed the required minimum distribution (RMD) age twice in four years, first from 70.5 to 72, then to 73, with a later move to 75 already written into law. If you cannot remember which number applies to you, you’re probably not alone because the rule depends on the year you were born.

Here is the answer, followed by the part many people miss: Why starting withdrawals early can cost far less than waiting.

Quick Answer: What Age Do You Have to Start Taking RMDs?

The wrinkle is 1959. SECURE 2.0 (which refers to Setting Every Community Up for Retirement Enhancement) was written in a way that arguably assigns both ages to that birth year, and the IRS has not finalized the fix. Its position in proposed regulations is that age 73 applies, so plan on 73 if that is your year.

Your RMD Age by Birth Year

The 1959 Problem, Explained Honestly

If you were born in 1959, you may have read conflicting answers, and both were defensible.

SECURE 2.0 contains overlapping language that can be read to place 1959 births in either the age 73 or the age 75 group, and when the IRS issued final regulations in July 2024, it explicitly declined to settle the question. Proposed regulations released the same day state that age 73 applies, which matches the legislative history.

A full clarification is still pending, because IRS Announcement 2026–27 pushed its effective date to no earlier than Jan. 1, 2027, while confirming that SECURE 2.0’s requirements remain in force. Plan for 73, and confirm with your plan administrator before your first distribution year.

When Your First RMD Is Actually Due

Your first RMD is actually not due on Dec. 31 of the year you reach your applicable age; you have until April 1 of the following year to act. Every RMD after that is due on Dec. 31.

That grace period is a trap more often than a gift. Using it means two distributions land in the same tax year, the delayed first one and the regular second. Doubling up can push income into a higher bracket, trigger a Medicare surcharge, or both. Taking the first distribution on time usually costs less.

Miss a distribution entirely and the excise tax is 25 percent of the shortfall, dropping to 10 percent if you correct it within two years.

3 Reasons Why Waiting as Long as Possible Can Backfire

A later start age sounds like a gift, but sometimes it is the opposite.

The balance keeps growing. Every year you defer, the account compounds and the forced withdrawal gets larger. Waiting until 75 does not shrink the tax bill—it concentrates it.

What to Do With the Waiting Years

How much to convert depends on your bracket, your other income, your state, and your heirs, so run the numbers with a tax professional before moving a large sum.

FAQs: RMD Age

Is the RMD Age 73 or 75?

It depends on when you were born. Anyone born from Jan. 1, 1951, through Dec. 31, 1959, has an RMD age of 73. Anyone born on or after Jan. 1, 1960, has an RMD age of 75. The change came from SECURE 2.0, which set 73 as the age starting in 2023 and scheduled the move to 75 for people reaching that age later. Your birth year, not the current year, determines which applies.

What Is the RMD Age if You Were Born in 1959?

Plan on 73. SECURE 2.0 contains overlapping language that can be read to assign 1959 births to either age, and the IRS final regulations issued in July 2024 declined to resolve it. Proposed regulations from the same date say age 73 applies, consistent with the legislative history, but that clarification has been delayed until at least Jan. 1, 2027. Confirm your date with your plan administrator before your first distribution year.

What Happens if You Miss a Required Minimum Distribution?

The IRS charges an excise tax of 25 percent on the amount you failed to withdraw. If you correct the shortfall within a two-year window, that drops to 10 percent. The penalty can also be waived entirely if you show the shortfall resulted from reasonable error and you are taking steps to fix it. If you discover a missed distribution, take it promptly and file the correction rather than waiting for the IRS to notice.

Do You Have to Take RMDs If You Are Still Working?

You do not always need to do this from your current employer’s plan. If you participate in a workplace retirement plan and own 5 percent or less of the business sponsoring it, you can generally delay distributions from that plan until the year you retire. The exception does not extend to IRAs, which follow the standard schedule regardless of employment. It also does not cover plans from previous employers, so old 401(k)s still require distributions on time.

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