IRS RMD Rules: $680,000 IRA Faces $25,660 Tax in 2026

Individuals over 73 can defer required minimum distributions (RMDs) from their current employer's 401(k), but must withdraw from rollover IRAs. A $680,000 rollover IRA incurs about $25,660 in taxable withdrawals in 2026, while a current employer's 401(k) of $410,000 remains untouched. The exception is voided for employees owning more than 5% of the sponsoring business. This distinction is crucial for retirees managing their withdrawal strategies and tax implications, as it affects their financial planning in retirement.

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