RMD Reminder:

Why Timing Matters for Year-End Distributions

If you’re age 73 or older (or inherited a retirement account), it’s time to start thinking about Required Minimum Distributions (RMDs). These mandatory withdrawals may feel like just another box to check—but when handled thoughtfully, they can also create opportunities for better tax efficiency and meaningful impact.

And here’s the good news: they don’t have to be last-minute.

What Is an RMD?

An RMD is the minimum amount you must withdraw each year from certain retirement accounts, such as:

  • Traditional IRAs
  • SEP IRAs
  • SIMPLE IRAs
  • Employer-sponsored plans like 401(k)s or 403(b)s

The IRS requires you to begin taking RMDs starting at age 73 (or 72 if you reached that age before January 1, 2023). Miss the deadline—or withdraw too little—and you could face a steep penalty.

That’s why now is the ideal time to check in.

RMD Timing: Why It Matters

Many people wait until late December to take their RMDs, but rushing through the process can lead to missteps or missed opportunities.

By planning earlier in Q4, you can:

  • Avoid end-of-year processing delays
  • Strategically time your withdrawals for income or tax planning
  • Reduce emotional decision-making during the holiday rush
  • Coordinate with charitable strategies like Qualified Charitable Distributions (QCDs)

Give With Purpose: The Power of QCDs

If you’re age 70½ or older, you may be eligible to make a Qualified Charitable Distribution (QCD)—a direct transfer from your IRA to a qualified charity, up to $100,000 per year. A QCD can count toward your RMD and reduce your taxable income, all while supporting the causes you care about.

QCDs are especially helpful for individuals who don’t itemize deductions but still want to give generously and receive a tax benefit.

Coordinating With Your Broader Plan

RMDs can also impact your:

  • Medicare premiums (via your Modified Adjusted Gross Income)
  • Social Security taxability
  • Year-end tax bracket
  • Estate planning goals

That’s why we encourage clients to view their RMDs not as an isolated task, but as part of a holistic strategy—one that considers the bigger picture of retirement income, taxes, and giving.

Let’s Make a Plan—Before the Rush

Whether you’ve been taking RMDs for years or are preparing for your first one, now is the time to get ahead of it. If you’re considering a QCD, need help calculating your distribution, or just want to explore your options, we’re here to help make it smooth, intentional, and aligned with your goals.

Reach out soon—we’ll walk through the best path forward, together.