If You Turn 74 After 2032, Your First RMD Starts at 75, Not 73

Federal law has quietly raised the required minimum distribution, or RMD, starting age for many younger retirees, yet a lot of retirement projections still rely on the older rule. That mismatch can shorten the window for Roth conversions and leave future tax estimates looking off before retirement even begins.

The key issue is the age when RMDs begin. These are annual withdrawals the IRS requires from traditional IRAs and 401(k)s. Many retirement models still assume the withdrawals start at 73, but for many people now in their 60s, federal law sets the start age at 75. Those extra years can make a real difference in tax planning.

This age bracket also controls a large share of retirement assets. Households headed by someone age 55 to 69 held 49.5% of all defined contribution pension assets and annuities in the second quarter of 2026. Eventually, those balances are subject to the RMD rules.

What Section 401(a)(9)(C)(v) Says About the Start Age

The rule appears in Section 401(a)(9)(C)(v) of the Internal Revenue Code, as revised by SECURE 2.0, and it defines the “applicable age,” or the age that starts the RMD clock. If a person reaches age 72 after December 31, 2022, and turns 73 before January 1, 2033, their applicable age is 73.

A separate provision covers the younger group. If someone reaches age 74 after December 31, 2032, their applicable age is 75. In practical terms, people born from 1951 through 1959 fall under the 73 rule, while those born in 1960 or later fall under the 75 rule.

How the IRS Resolved the 1959 Overlap

The wording left one birth year in a gray area. Someone born in 1959 turns 73 in 2032 and 74 the following year, so that cohort appears to fit both provisions. Treasury and the IRS addressed this in proposed regulations released in July 2024 under the heading “Determination of Applicable Age for Employees Born in 1959.” Their position is that this group’s applicable age is 73.

That means the later start age effectively begins with the 1960 cohort, which turns 75 in 2035. IRS guidance also allows the first withdrawal to be delayed until April 1 of the year after the applicable age is reached.

Why Two Extra Years Matter for Roth Conversions

A Roth conversion moves money from a traditional account into a Roth account. Taxes are due now on the converted amount, while qualified Roth withdrawals later are generally tax-free. The years between retirement and the first RMD are often the lowest-income years a household has, and the higher start age adds two more of them.

Tax brackets show why that matters. For 2026, the IRS places the top of the 12% bracket at $100,800 of taxable income for joint filers and $50,400 for single filers. The standard deduction is $32,200 for joint filers and $16,100 for single filers, shielding income before any bracket applies.

There is also a trade-off. Leaving money untouched for two extra years can allow it to grow, but RMDs are calculated by dividing the year-end balance by an IRS Uniform Lifetime Table factor. A larger balance can mean larger required withdrawals later, which may push someone into a higher bracket. Missing an RMD brings a 25% excise tax on the shortfall under Section 4974(a). The tax result of the extra time depends on how it is used.

Social Security, Medicare and Charitable Giving Timing

Delaying Social Security keeps taxable income lower for a while, which can create more room for conversions. At the same time, conversions raise modified adjusted gross income, which Medicare uses to determine premium surcharges. The standard Part B premium for 2026 is $202.90. Those surcharges begin above $109,000 for single filers and $218,000 for joint filers.

Qualified charitable distributions did not change with the RMD age. These are direct transfers from an IRA to a charity, and they do not count as taxable income. Under Section 408(d)(8)(B)(ii), they are still available beginning at age 70½. For people in the 1960-and-later group, that leaves roughly 4.5 years when charitable distributions are available but RMDs have not yet started.

Rules That Stayed the Same

The age at which early withdrawals stop triggering a penalty remains 59½ under Section 72(t). Before then, the extra tax is 10% of the taxable amount. Inherited accounts follow separate rules. IRS Publication 590-B says that for most beneficiaries, distributions must be completed by the end of the 10th year after death, with exceptions for certain eligible designated beneficiaries.

Checking a Plan Against the Correct Age

Retirement software, older spreadsheets and some adviser projections may still default to 73. For anyone born in 1960 or later, that would start required withdrawals two years too early. It can also narrow the conversion window and distort future tax estimates. A quick way to check a projection is to compare the planned RMD start year with the statute.

The applicable age depends on the account owner’s birth date. A birth year of 1959 or earlier points to 73. A birth year of 1960 or later points to 75, with the first withdrawal due in the year that birthday arrives.