Required minimum distributions — the retirement account rules that change everything
Reviewed by the How To Help Your Elders editorial team | Updated March 2026
Once your parent turns 73, the IRS requires them to withdraw a minimum amount from their traditional retirement accounts every year, whether they need the money or not. Missing this deadline triggers a 25 percent penalty. This article explains how RMDs work, how they affect your parent's taxes and Medicare premiums, and what you need to do to stay ahead of them.
The Government Owns a Say in How Your Parent's Retirement Money Gets Spent
You get a letter or statement from your parent's IRA custodian, and it mentions something about a required minimum distribution. The number is larger than expected, or smaller. Maybe it wasn't supposed to happen yet. You feel that familiar weight settle in your chest, the one that comes when you realize there's another financial rule you didn't know existed, and your parent's money is somehow affected by it.
Required minimum distributions sound like something only accountants should understand. But you're here because you're trying to help your parent manage their money, and suddenly this became your problem too. The thing about RMDs is that they are not optional, despite the word "minimum" making them sound negotiable. If your parent misses one, the IRS doesn't send a friendly reminder. According to the IRS, the penalty for a missed RMD is 25 percent of the amount that should have been withdrawn. That is not a small fine. That is a quarter of the money gone to penalties.
Once your parent turns 73, the government requires them to withdraw from certain retirement accounts every single year. This rule exists because the government originally gave a tax break when that money went in, and now it wants its taxes. Understanding this now, before there's a missed deadline, can save your parent thousands of dollars in penalties.
This affects you because you're probably helping manage bills, reviewing statements, or trying to figure out whether your parent has enough money to cover care costs. An unexpected RMD can change your parent's tax situation, affect their Medicare premiums, or drain resources you thought were reserved for something else.
How RMDs Actually Work
An RMD is the minimum amount the IRS says your parent must withdraw each year from certain retirement accounts. These include traditional IRAs, SEP-IRAs, SIMPLE IRAs, and employer plans like 401(k)s and 403(b)s. Roth IRAs are different: your parent doesn't owe RMDs on a Roth account during their lifetime.
The RMD age has changed several times. It used to be 70.5, then moved to 72, and as of 2023 it's 73. Under the SECURE 2.0 Act, it will rise to 75 for those born in 1960 or later. If your parent was born before 1950, the current age is 73.
The amount is calculated with a specific formula published by the IRS. Your parent's account balance on December 31st of the previous year gets divided by the life expectancy divisor for their age from the IRS Uniform Lifetime Table. So if your parent is 75 and has $500,000 in a traditional IRA, and the divisor for age 75 is 24.6, they must withdraw at least $20,325 that year.
The distribution must happen by December 31st each year, with one exception: the very first RMD can be delayed until April 1st of the year after your parent turns 73. Most people take it by December 31st anyway because delaying until April means taking two RMDs in the same year, which creates a double tax hit.
Your parent can always take more than the minimum. If their RMD is $20,000 but they need $30,000, that's fine. The IRS only cares that at least the minimum gets taken.
If your parent has multiple retirement accounts, they must take the total RMD amount across all of them. A parent with three IRAs can satisfy the total RMD by taking it from whichever accounts they choose, but they must track the total. Employer plans like 401(k)s typically require the distribution to come from each plan individually.
If your parent has inherited retirement accounts from someone else, those have entirely different RMD rules. Under the SECURE Act, most non-spouse beneficiaries must withdraw the entire inherited account within 10 years. Inherited accounts can trigger larger distributions over shorter periods, which is a major tax event.
How RMDs Affect Your Parent's Care Situation
If your parent is in assisted living or needs in-home care, those costs come from somewhere. Sometimes from regular income like pensions or Social Security. Sometimes from the RMD itself. The RMD is taxable as ordinary income. If your parent takes a large RMD and also has other income, their total might push them into a higher tax bracket.
There is also the Medicare connection that catches many families off guard. Medicare Part B and Part D premiums are based on modified adjusted gross income from two years prior. The IRS calls this IRMAA, the Income-Related Monthly Adjustment Amount. According to Medicare.gov, beneficiaries whose income exceeds certain thresholds pay significantly higher premiums. A large RMD taken this year affects Medicare premiums two years from now. For 2026, the standard Part B premium is roughly $185 per month, but IRMAA surcharges can push that above $500 per month for higher-income beneficiaries.
An RMD might also trigger taxation of Social Security benefits. If your parent's combined income (including half of Social Security plus other income) exceeds $34,000 for an individual filer, up to 85 percent of their Social Security benefits become taxable. The RMD counts toward that threshold.
What You Need to Do Right Now
The first step is knowing your parent's RMD requirements for the current year. If your parent hasn't turned 73 yet, mark your calendar for the year they turn 73. If your parent is already past 73 and hasn't taken their distribution this year, you need to take action now.
Call the institution holding your parent's retirement accounts. Ask what the RMD is for the current year and whether your parent has already taken one. Get the exact amount in writing. Don't rely on a voicemail. Ask them to confirm it in your parent's online account or send a formal statement.
Decide where the distribution should come from. If your parent has multiple traditional IRAs, this can be strategic. Some people clean up small accounts by taking distributions from them first. Others prefer to keep money in the account they trust most.
Schedule the distribution well in advance of the deadline. Don't wait until December 15th to request it. Financial institutions sometimes take weeks to process distributions, especially if they need to mail a check.
Talk to your parent's tax advisor about the impact. If they have a large RMD, it might be worth making quarterly estimated tax payments. If they're on Medicare, they should understand the IRMAA implications. If they're trying to manage income to stay below a benefits threshold, the RMD might prevent that.
If your parent isn't able to make these decisions themselves and you have power of attorney, confirm with the financial institution that you have authority to request distributions. Some institutions are cautious about processing distributions when someone other than the account owner requests them. Getting written documentation of your authority saves time and confusion.
If penalties have already been assessed because of a missed RMD, the IRS does have a process to request a waiver. According to IRS guidance, first-time errors can sometimes be forgiven if you file Form 5329, explain the reasonable cause, and take the missed distribution immediately. A tax professional can help with this, but you have to request the waiver formally.
Create a simple system so this doesn't surprise anyone next year. Write down the RMD amount, the deadline, and which account it comes from. Put a recurring calendar reminder in place. The method doesn't matter. What matters is that someone remembers to make it happen every single year.
Your parent worked hard for that money. Making sure it goes to their care instead of unnecessary penalties means you're protecting one of their most important assets.
Frequently Asked Questions
What happens if my parent misses an RMD deadline?
The IRS penalty is 25 percent of the amount that should have been withdrawn. If the error is corrected within two years, the penalty may be reduced to 10 percent. First-time errors can sometimes be waived entirely if you file Form 5329 with a reasonable cause explanation and take the missed distribution immediately.
Do Roth IRAs require minimum distributions?
No. Roth IRAs do not require distributions during the original owner's lifetime. This makes Roth IRAs particularly valuable for people who don't need the money for living expenses, because the funds can continue to grow tax-free. After the owner's death, beneficiaries do have distribution requirements under the SECURE Act.
Can my parent take the RMD from any account they want?
For traditional IRAs, yes. If your parent has multiple IRAs, they can calculate the total RMD across all of them and take it from whichever account or combination of accounts they choose. For employer plans like 401(k)s, the distribution generally must come from each plan individually.
How does an RMD affect Medicare premiums?
Medicare premiums are based on modified adjusted gross income from two years prior. A large RMD increases that income figure, which can trigger IRMAA surcharges on Part B and Part D premiums two years later. For 2026, IRMAA thresholds start at roughly $106,000 for individuals and $212,000 for married couples filing jointly.
At what age do RMDs start?
Under current law, RMDs begin at age 73 for most people. Under the SECURE 2.0 Act, the age will increase to 75 for individuals born in 1960 or later. Your parent's specific birth year determines their starting age. The first RMD can be delayed until April 1st of the year following the year they turn 73, but delaying means doubling up distributions in that second year.