Ask an Advisor: My Husband’s RMDs Start in 2027, and He Has Multiple IRAs. What’s the Best Strategy?

My husband will turn 73 on Nov. 16, 2027. How much of an RMD does he have to withdraw in 2027 and should he do it between Nov. 16 and Dec. 31, 2027? What percentage of his retirement assets should he withdraw every year thereafter? Also, is it correct that he needs to make the withdrawal from each of his IRAs? Or can he withdraw everything from one or two of his accounts, as long as total withdrawals fulfill the required percentage of his total portfolio of qualified assets?     – Marisa

Got a question you’d like answered? Email AskAnAdvisor@smartasset.com and your question may be answered in a future column. And if you need help planning for RMDs or making other strategic decisions in retirement, you can consider speaking with a financial advisor.

Determining the RMD for 2027

When planning for retirement withdrawals, required minimum distributions (RMDs) play a central role in determining when and how much retirees need to withdraw from their tax-deferred retirement accounts, such as traditional IRAs and 401(k)s. For those approaching age 73, like your husband, these rules ensure that retirement funds are used as intended during one’s lifetime, rather than being indefinitely deferred.

As for how much your husband must withdraw when he turns 73? It depends. We’ll walk through how you can determine RMD amounts and provide an example of the calculation that will hopefully help with your own process.

When your husband turns 73 on Nov. 16, 2027, he will have a mandatory RMD to fulfill for that year. To calculate the exact RMD for 2027, you’ll need the following details:

• Account balances as of Dec. 31, 2026: The RMD is based on the prior year’s ending account balances. These accounts include traditional IRAs, 401(k)s, 403(b)s, 457(b)s and retirement plans for the self-employed, such as SEPs and SIMPLE IRAs. Note that Roth IRAs are not included in the calculation. Later, we will discuss which accounts can be aggregated and which must be approached separately.
• Life expectancy divisor: This is a number from the IRS’s Uniform Lifetime Table or Joint Life Expectancy Table, depending on your husband’s age and, if applicable, your age as his spouse.

For someone turning 73, the life expectancy divisor from the IRS’s Uniform Lifetime Table is currently 26.5. This factor could change between now and 2027, so please be sure to check the table for updates before the start of 2027. Also, make sure to use the correct table depending on your circumstances (Uniform or Joint Life, as noted above).

To calculate your husband’s RMD when the time comes, divide his Dec. 31, 2026, balance by the appropriate divisor. For example, if his IRA has an ending account balance of $1 million, then the calculation would look like this (assuming use of the Uniform Lifetime table and 2024 divisors):

RMD = $1,000,000 / 26.5 ≈ $37,736

If you have multiple RMD-eligible retirement accounts, then you should calculate the RMD associated with each account individually. The sum of these individual values it your total RMD for the year.

(And if you have additional questions about RMDs or other retirement planning topics, consider speaking with a financial advisor.)

You can also use SmartAsset’s RMD Calculator to help you determine how much you’ll need to take from your retirement accounts at RMD age.

Timing and Sizing RMDs in 2027 and Beyond

The IRS mandates that RMDs be taken by the end of the calendar year (December 31), with no requirement tied to the date of birth within that year. This means your husband’s 2027 RMD can be taken any time between January 1 and December 31. However, the IRS permits you to defer your first RMD until April 1 of the following year. As a result, your husband could choose to delay his first RMD until April 1, 2028, although this would mean taking two distributions in 2028: one for 2027 and one for 2028.

Most retirees prefer to withdraw the first RMD in the year they turn 73 to avoid doubling the RMD in the subsequent tax year. The decision depends on various personal factors, including your own preferences and your cash flow situation, among others.

After taking the first distribution, you will calculate future RMD amounts the same way as outlined previously, adjusting for the prior year’s ending account balances and relevant age divisor. In practical terms, the RMD percentage begins around 4% at age 73 and increases incrementally each year. These rising percentages ensure that retirees draw more from their accounts as they age, potentially reducing the balance subject to future taxes.

When RMDs Aren’t Enough

If your husband’s portion of your collective retirement expenses exceed his annual RMD, then he may need to withdraw more than the required minimum.

To estimate a sustainable withdrawal rate, consider a few factors:

1. Life expectancy and healthcare costs: Estimating longevity and potential healthcare expenses can help you to plan conservatively. Of course, be sure to factor in the presence of things like long-term care insurance if you have a policy.
2. Investment returns: The performance of his retirement assets will influence his capacity to sustain withdrawals. Investment performance will also impact the size of withdrawals since the numerator is the account balance.
3. Other sources of income: Income from Social Security and other sources such as a pension might offset to an extent the amount needed from retirement accounts, although he will still need to meet the “minimum” criteria with RMDs.

(Retirement income planning can be complex, which is why you may want to work with a fiduciary financial advisor who specializes in retirement planning.)

RMDs for Multiple Qualified Accounts

A common misconception is that RMDs must be taken from each retirement account individually, which is not the case in all scenarios despite the calculations being done on an account-by-account basis.

If your husband has multiple IRAs, he can take the aggregated RMD amount for all IRAs from any single account or combination of IRA accounts. This includes self-employed retirement accounts like SEPs and SIMPLE IRAs. The flexibility afforded by this can simplify withdrawals, especially if the assets in one account have performed better or have lower fees, allowing for more strategic choices.

401(k) accounts are different. Unlike IRAs, RMDs for 401(k) accounts must be withdrawn from each account individually. If your husband has multiple 401(k)s from past employers and has not consolidated them, then each one will need to satisfy its own RMD requirement unless he chooses to roll over these funds into a single IRA, which might simplify the process. Before pursuing a rollover for strategic reasons, though, bear in mind the investment choices, fees and benefits available in each plan.

403(b) plans are more like IRAs in that RMDs across multiple accounts can be combined and drawn from one or more 403(b)s. You will follow the same process as with IRAs if you want to draw from a single account – calculate the RMDs for each account individually and then decide from which account(s) to take the distribution.

(And if you need help finding a financial advice, our quiz matches you with up to three fiduciary advisors who have passed a rigorous vetting process.)

Bottom Line

Developing a sound RMD strategy begins with understanding the rules. Once you have a strong grasp of the rules and process, think about the different accounts you own that will be subject to RMDs. From here, you can personalize your approach so that you and your husband can navigate RMDs effectively, ensuring  funds are withdrawn in a tax-efficient manner that supports financial security in retirement.

RMD Planning Tips

• Remember that RMDs count as income in the year the withdrawal occurs. If you’re planning to delay your first RMD until the year after you reach RMD age, you’ll still be required to make your second RMD in that same year. This could leave you with more income than you anticipated and an onerous tax bill, highlighting the importance of planning ahead.
• A financial advisor can help you create a retirement plan that accounts for your RMDs and other sources of income. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
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Jeremy Suschak, CFP®, is a SmartAsset financial planning columnist who answers reader questions on personal finance topics. Jeremy is a financial advisor and head of business development at DBR & CO. He has been compensated for this article. Additional resources from the author can be found at dbroot.com. Please note that Jeremy is not a participant in SmartAdvisor AMP, is not an employee of SmartAsset and he has been compensated for this article. 

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