Required minimum distributions (RMDs) force you to withdraw, and pay tax on, part of your traditional IRA and workplace retirement accounts each year once you reach age 73 (75 if born in 1960 or later). Good RMD strategies can lower the tax: qualified charitable distributions of up to $111,000 in 2026, Roth conversions before RMDs begin, timing the first distribution, and coordinating withdrawals with Social Security and the new $6,000 senior deduction. Here are the rules in brief and the strategies that save the most.
RMD Rules in Brief
| Rule | 2026 |
|---|---|
| Starting age | 73 if born 1951-1959; 75 if born 1960 or later |
| First RMD deadline | April 1 of the year after you reach RMD age |
| Later RMDs | December 31 each year |
| Calculation | Prior December 31 balance divided by your IRS life expectancy factor (26.5 at age 73) |
| Penalty | 25% of the shortfall, or 10% if corrected promptly |
| Roth IRAs and Roth 401(k)s | No RMDs for the original owner |
For the full rules, see required minimum distribution rules for 2026.
Strategy 1: Qualified Charitable Distributions
Among all RMD strategies, this is often the most valuable for people who give to charity. From age 70½, you can send up to $111,000 in 2026 directly from an IRA to charity. It counts toward your RMD but is excluded from income, which lowers AGI, reduces the taxable share of Social Security and helps you stay under Medicare surcharge thresholds and the senior deduction phase-out. See qualified charitable distributions.
Strategy 2: Roth Conversions Before RMDs Start
The best long-term RMD strategies start before your first RMD. The years between retirement and RMD age are often low-income years. Converting part of a traditional IRA to a Roth each year fills low tax brackets now and shrinks future RMDs, since Roth IRAs have none. Watch the effect on Medicare premiums (based on income two years earlier) and on the senior deduction, which phases out above $75,000 of modified AGI ($150,000 joint).
Example: A married couple, both 65, has $1.2 million in traditional IRAs. Converting $60,000 a year for eight years, staying within the 12% and 22% brackets, moves $480,000 to Roth before RMDs begin and reduces their first RMD by roughly $18,000 a year.
Strategy 3: Time Your First RMD
You can delay your first RMD until April 1 of the following year, but then you take two RMDs in that year, which can push you into a higher bracket. For most people, taking the first RMD in the year you reach RMD age is better.
Strategy 4: Take RMDs Late in the Year and Withhold
Withholding from an RMD is treated as paid evenly through the year, even if it happens in December. Taking your RMD late and withholding enough to cover tax on all your retirement income can replace quarterly estimated payments and keep more money invested longer.
Strategy 5: Use the Still-Working Exception
If you work past RMD age and own 5% or less of the company, you can usually delay RMDs from your current employer’s 401(k) until you retire. Rolling old IRAs into that plan, if allowed, can delay RMDs on those dollars too.
Strategy 6: Coordinate With Social Security
Delaying Social Security to 70 while drawing from IRAs in your 60s can reduce lifetime taxes, because it lowers future RMDs and raises the inflation-adjusted Social Security check, which is taxed more lightly. See how Social Security is taxed in 2026.
Strategy 7: Choose Which Accounts to Draw From
- You can total RMDs for all of your IRAs and take them from any one, such as the IRA with the least attractive investments.
- 403(b) RMDs can also be aggregated among 403(b)s.
- Each 401(k) and 457(b) must satisfy its own RMD.
- If your spouse is more than 10 years younger and your sole beneficiary, the Joint Life table lowers your RMD.
Strategy 8: Plan for Heirs
Most non-spouse beneficiaries must empty an inherited IRA within 10 years, often during their peak earning years. Roth conversions, QCDs and spending traditional IRAs first can leave heirs more tax-efficient assets. See how IRA distributions are taxed.
Common RMD Mistakes
- Missing the first RMD deadline or forgetting an old 401(k).
- Taking the RMD from the wrong account type.
- Taking cash first and then donating, instead of using a QCD.
- Rolling over an RMD, which is not allowed.
- Not using the 10% reduced penalty by correcting quickly.
Frequently Asked Questions
What are the best RMD strategies?
Qualified charitable distributions, Roth conversions before RMD age, taking the first RMD on time, and coordinating withdrawals with Social Security and tax brackets.
Can I reinvest my RMD?
Yes, in a taxable brokerage account, but not back into an IRA. You can also contribute earned income to a Roth IRA if eligible.
Can I avoid RMDs entirely?
Only on Roth accounts, or temporarily through the still-working exception for a current employer plan.
What happens if I take more than my RMD?
The excess does not count toward future years’ RMDs.
Final Thoughts
The best RMD strategies start years before your first required withdrawal. Combine QCDs, Roth conversions and careful timing to keep more of your savings and leave a more tax-efficient inheritance.
Have questions about how this applies to your situation? Book a free consultation with Aric and get answers from a CPA.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.