Here's What Your 2026 RMD Could Be If You Have $500,000 in Your IRA

If you haven't thought about your 2026 required minimum distribution (RMD) yet, now's probably a good time to start, especially if you have $500,000 in your IRA. That can result in a pretty substantial RMD, and you may not want to take that money out in a lump sum.

Here's how to calculate your RMD and what you can do to avoid a single, large withdrawal when your investments are down.

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Roth IRAs don't have RMDs, so if your $500,000 is sitting in one of these accounts, you don't have to withdraw anything if you don't want to. This is because you generally don't pay taxes on Roth IRA withdrawals in retirement.

If your money is in a traditional IRA, you will have to take an RMD if you'll be at least 73 by Dec. 31, 2026. You can calculate yours by dividing your account balance -- $500,000 in our example -- by the applicable denominator for your age as of the end of the year from the IRS' Uniform Lifetime Table.

For example, if you're turning 73 this year, your RMD would be $500,000 divided by the 26.5 applicable denominator, or about $18,868. If you're 75 this year, you'd divide by 24.6 instead, giving you an RMD of $20,325.

If you don't want to withdraw that money all at once, consider spreading it out over the remaining months of the year. This is an especially smart strategy if you're worried about market volatility. It reduces the risk that you'll have to make a five-figure withdrawal when your investments are down, forcing you to sell more of your stocks than you want to.

You must complete your RMD by Dec. 31, 2026, if you'll be 73 or older by the end of the year. Those turning 73 this year have until April 1, 2027, to take their first RMD, but if you choose to wait, you'll effectively have to take two RMDs next year.

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