SECURE 2.0 RMD Age 73 vs 75 Tax Hit 2027 Calculator

SECURE 2.0 Changes

SECURE 2.0 Act (passed Dec 2022) raised RMD starting age to 73 (from 72) for those turning 72 in 2023 or later. Further raises to 75 in 2033 for those turning 74 in 2032+. Penalty for missed RMD dropped from 50% to 25%, and to 10% if corrected within the "correction window." The age delay gives investors 1-3 extra years of tax-deferred growth.

The Uniform Lifetime Table

RMD = account balance ÷ divisor from IRS Uniform Lifetime Table. At age 73: divisor 26.5 (RMD ≈ 3.77% of balance). At 80: divisor 20.2 (RMD ≈ 4.95%). At 90: divisor 12.2 (RMD ≈ 8.2%). Each year the divisor decreases — meaning higher percentage withdrawal required. Multiple IRAs can be aggregated for total RMD calculation but 401(k)s must be calculated and withdrawn separately per account.

QCD: Best Tax Strategy for Charitable RMDs

QCD (Qualified Charitable Distribution) routes RMD directly to qualifying charity — counts toward RMD but is EXCLUDED from taxable income. 2027 cap raised to $108k/year per individual ($216k for couples). Strategy beats itemizing: standard deduction is high ($30k MFJ 2026), so most retirees can't itemize charity deductions. QCD effectively gives them the tax benefit anyway. Available from age 70.5 — even before RMD starts.

Partial Roth Conversion Pre-RMD

Aggressive strategy: convert IRA → Roth IRA in years 60-72 (before RMD starts) to reduce future RMD balance. Conversion is taxable now but eliminates lifetime RMDs (Roth has no RMD requirement). Works best when current marginal rate is LOWER than expected future RMD-era rate. Common scenario: early retirees with low income for 5-10 years can convert at 12-22% bracket, avoiding the 24-32% future RMD bracket.

Sources: irs.gov Pub 590-B 2022 RMD, congress.gov SECURE 2.0 Act text. Last updated: May 2026.