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February 2, 2026 / Law Alert

Eligibility ages for retirement withdrawals and Social Security benefits

As the rules under the SECURE Act (as further developed in the SECURE 2.0 Act) continue to reshape the retirement landscape, including gradually pushing back the age for Required Minimum Distributions (RMD or RMDs), many individuals are left wondering what rules will apply to them. To make planning easier, here’s a clear snapshot of the withdrawal ages that are in effect in 2026.

Retirement assets

Accounts such as (401(k), 403(b) and traditional IRAs can generally be taken out before age 59 ½ but will incur a 10% early withdrawal penalty plus ordinary income tax. Penalties apply to most pre-age-59 ½ withdrawals, but exceptions exist for hardships, disability or specific life events. 

Taking out retirement assets between ages 59 ½ and 73 allows penalty-free access to funds. While the 10% early withdrawal penalty is avoided, withdrawals will start to be taxed as ordinary income. Roth IRAs allow tax-free, penalty-free withdrawals of earnings if the account has been open for five years starting from Jan. 1 of the tax year of the first contribution - not the exact date of deposit. These withdrawals are only qualified if the account owner is 59 ½ or older, disabled, a first-time homebuyer or dies.

Required Minimum Distribution 

An RMD is the minimum amount that must be withdrawn each year from certain taxā€‘deferred retirement accounts, such as traditional IRAs and most employerā€‘sponsored plans, once a taxpayer reaches a specific statutory age. These withdrawals ensure that funds enjoying decades of taxā€‘deferred growth eventually enter the taxable system.

The earliest an individual is required to take their first RMD is by April 1 of the year following the year they reach age 73. While individuals may wait until this deadline, they can also take their first RMD by Dec. 31 of the year they turn 73, which avoids doubling up on RMD income the following year. All subsequent RMDs after the first RMD must be taken by Dec. 31 of each year. Failure to take an RMD on time may result in a 25% penalty on the amount not taken, which may be reduced to 10% if the error is corrected within two years - a penalty structure that was updated under the SECURE 2.0 Act.  If an individual is still working at age 73, they may be able to delay RMDs from their current employer’s 401(k) or 403(b) plan until April 1 of the year after they retire. This exception generally does not apply to IRAs.

Congress reshaped RMD timing under the SECURE Act. Under prior law, individuals were required to begin RMDs at age 70 ½. The SECURE Act raised that age to 72 and SECURE 2.0 Act introduced a phasedā€‘in increase:

  • Age 72 for individuals born 1951 or earlier
  • Age 73 for individuals born 1952–1959  
  • Age 75 for individuals born 1960 or later 

For individuals in 2026, this means that the first RMD date depends entirely on birth year. This longer deferral window may allow additional taxā€‘advantaged growth but also requires more intentional coordination with other sources of retirement income.

Ages of collection of Social Security retirement benefits

Social Security retirement benefits provide income to individuals who are age 62 and older and have worked and paid Social Security taxes for at least 10 years. Such benefits are funded through payroll taxes and calculated based on a worker’s earnings history. Individuals can collect Social Security retirement benefits and work simultaneously. However, if they are under full retirement age (FRA), the government will deduct $1 from the benefit payments for every $2 they earn above the annual limit. In 2026, the annual limit is $24,480. In the year they reach FRA, the government deducts $1 in benefits for every $3 you earn above a different annual limit. In 2026, the annual limit on their earnings for the months before FRA is $65,160. The government only counts earnings up to the month before they reach their FRA. Once they reach FRA, there is no limit on earnings and benefits are recalculated to restore earlier reductions. 

Individuals face a range of choices regarding when to begin receiving benefits and there are tradeā€‘offs of claiming early or delaying:

  • Claiming at age 62: Benefits can start as early as age 62 but they are permanently reduced by as much as 30% compared to waiting until FRA. Early claiming may make sense for individuals with immediate income needs or shorter life expectancy, but the reduced lifetime payout should be weighed carefully.
  • Claiming at FRA: Claiming at FRA provides the full, unreduced benefit and avoids early claiming penalties. FRA depends on your birth year, generally increasing from 66 (for those born in the mid1950s) up to age 67 for anyone born in 1960 or later. 
  • Delaying until age 70: Delaying benefits beyond FRA until age 70 maximizes monthly payments when they start to take their benefits, providing an 8% annual increase in benefits for every year they wait beyond their FRA, resulting in up to 24% more for individuals who can afford to wait until age 70 to start to take social security benefits.
  • Waiting until past 70: There is no incentive to wait past age 70, making it the optimal age to begin collecting.

If you have any questions or would like to discuss further, please contact Margo Ceresney, Shrey Patel or any member of the Estate Planning & Personal Wealth team.