The SECURE Act and RMDs: What Changed?

Oct 3, 2025 | Blog, Required Minimum Distributions (RMDs)

If you’ve been hearing different ages for when required minimum distributions (RMDs) begin, you’re not alone. Over the last few years, Congress has changed the rules more than once through the SECURE Act of 2019 and the SECURE 2.0 Act of 2022, and the IRS followed with final regulations in 2024.

Here’s a clear look at what changed, what it means for you this year, and what’s still ahead.

Before the SECURE Act

For decades, RMDs began at age 70½. The half-year rule often confused people, since it didn’t line up neatly with a birthday or a calendar year.

The SECURE Act of 2019

The original SECURE Act made two big changes to RMDs.

  1. The RMD age rose to 72. For people born on or after July 1, 1949, RMDs began at 72 instead of 70½, giving retirees an extra year and a half of tax-deferred growth.
  2. The “stretch IRA” ended for most beneficiaries. Before 2020, most people who inherited an IRA could spread distributions over their lifetime. For owners who died in 2020 or later, most non-spouse beneficiaries must now empty an inherited account within 10 years.

The SECURE 2.0 Act of 2022

SECURE 2.0 built on those changes in several important ways.

  1. The RMD age increased again. Beginning in 2023, RMDs start at age 73 for people born between 1951 and 1959, and at age 75 for people born in 1960 or later. (If you were born in 1959, there’s a small technical ambiguity in the law, but the IRS’s current position is that your RMD age is 73.)
  2. The penalty for missed RMDs dropped. The excise tax on a missed RMD fell from 50% to 25% of the amount not withdrawn. If the mistake is corrected within the IRS correction window, which is generally up to two years, the penalty can be reduced further to 10%.
  3. Roth 401(k)s no longer have RMDs. Beginning in 2024, Roth accounts in 401(k) and 403(b) plans are no longer subject to RMDs during the owner’s lifetime, matching the long-standing rule for Roth IRAs.

 

The Final IRS Regulations of 2024

In July 2024, the IRS issued final regulations explaining how many of these changes work in practice. They took effect in 2025. One of the most important clarifications involves inherited IRAs.

If the original owner had already started taking RMDs before passing away, most beneficiaries under the 10-year rule must now take annual distributions in years one through nine, then empty the account by the end of year 10. The IRS waived penalties for missed annual distributions from 2021 through 2024 while the rules were being finalized, but that relief has ended.

The IRS also proposed additional regulations covering other parts of SECURE 2.0, including the 1959 birth year question. Some of those rules are still being finalized, so it’s a good idea to check in with your tax advisor each year.

What This Means in 2026

  • If you were born in 1953, you turn 73 in 2026, which makes this your first RMD year. You can take it any time this year or wait until April 1, 2027, but waiting means taking two RMDs in 2027.
  • If you were born between 1951 and 1952, you’ve already begun RMDs and should continue taking them each year by December 31.
  • If you were born between 1954 and 1959, your RMDs will begin at 73.
  • If you were born in 1960 or later, your RMDs will begin at 75, which means the earliest age 75 RMDs will start in 2035.

 

Why These Changes Matter

  • More time for tax-deferred growth. A later start date gives your retirement savings more years to grow before withdrawals are required.
  • Potentially larger RMDs later. A bigger account balance and a shorter remaining life expectancy can mean larger required withdrawals once they begin, which is worth factoring into your tax planning.
  • More forgiveness for mistakes. The lower penalty offers some relief if a distribution is missed, although it still comes with a cost, so correcting it quickly matters.
  • New planning for heirs. The 10-year rule and annual distribution requirements mean beneficiaries need a plan too, especially when an inherited account holds real estate or other alternative assets.

 

How MidAtlantic IRA Can Help

We stay current on IRS rules so you don’t have to track every change on your own.

Because every situation is different, we always recommend reviewing your RMD plan with your CPA or tax advisor. MidAtlantic IRA doesn’t provide tax, legal, or investment advice, but we’re happy to help you understand how these rules apply to your self-directed account.

Not sure how these changes affect you? Schedule a call with our team and we’ll walk through it together.

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