For many retirees, a Required Minimum Distribution (RMD) can feel like one more item on the year-end financial checklist.
Calculate the amount. Take the withdrawal. Pay the taxes. Check the box.
But when you have spent decades building retirement savings, the decision about how and when to take money out deserves more attention than that.
An RMD may be required by the IRS, but that does not mean the rest of the decision is already made for you. How the distribution fits into your income, taxes, charitable giving, investment strategy, and longer-term estate plan can make it an important part of your broader financial picture.
And with the end of 2026 approaching, now is the time to have those conversations—not December 30.
Who Needs to Take an RMD in 2026?
Generally, RMDs apply to traditional IRAs, SEP IRAs, SIMPLE IRAs, 401(k)s, 403(b)s, 457(b)s, profit-sharing plans, and certain other retirement accounts once the account owner reaches the applicable RMD age.¹
For people born from 1951 through 1958, that age is currently 73. For people born in 1960 or later, the applicable age is 75.²
Roth IRAs and designated Roth accounts in employer plans generally do not require RMDs during the original account owner's lifetime.
Most people who are already taking RMDs need to complete their 2026 distribution by December 31. There are special rules for someone taking a first RMD, including the ability in certain circumstances to delay that first distribution until April 1 of the following year.
That delay may sound appealing, but it comes with a catch: waiting until 2027 to take your first 2026 RMD could mean taking both your 2026 and 2027 RMDs during the same calendar year.
That can make the timing decision more important than it initially appears.
Why Does RMD Timing Matter?
An RMD is generally included in taxable income. So, while the IRS determines the minimum amount that must leave the account, when and how you take that distribution can interact with the rest of your financial life.
For example, taking two RMDs in one year could increase taxable income for that year. More broadly, retirement-account distributions can affect other pieces of your tax and income strategy.
This is why we prefer to look at an RMD alongside the rest of the plan.
What income have you received this year? Have you realized significant capital gains? Are you making charitable gifts? Do you need the RMD for living expenses, or is it money you would otherwise prefer to leave invested? Are there other tax-planning decisions you are considering before December 31?
The answers can help determine what makes sense beyond simply satisfying the requirement.
What If You Don't Need the Money?
This is a common situation.
You spent your working years saving diligently for retirement, but now the government requires you to take money from an account even though you may not need it to cover your current expenses.
An RMD does not have to become spending money simply because it left your retirement account.
Depending on your circumstances, you might reinvest the after-tax proceeds in a taxable investment account, use the funds for planned expenses, make gifts to family members, or incorporate the money into your charitable giving.
The important part is having a plan for the distribution before it arrives in your checking account.
Could Charitable Giving Be Part of the Strategy?
For charitably inclined retirees, a Qualified Charitable Distribution (QCD) may be worth discussing.
A QCD allows an eligible IRA owner to direct money from an IRA to a qualifying charitable organization. When the requirements are met, the distribution can count toward an RMD while the QCD amount is excluded from taxable income.
That can make it an interesting planning tool for someone who already intends to give to charity.
There are specific eligibility requirements, annual limits, and rules about which accounts and charitable organizations qualify, so the mechanics matter. A QCD generally needs to go directly from the IRA to the eligible charity rather than passing through the account owner's hands first.³
The larger point is that charitable giving and RMD planning do not necessarily need to be two separate conversations.
What Happens If You Miss an RMD?
Missing an RMD can be costly.
Current federal rules generally impose a 25 percent excise tax on the amount that should have been withdrawn but was not. That rate can potentially be reduced to 10 percent when the shortfall is corrected within the applicable correction window and other requirements are satisfied.
That is a strong reason not to leave the process until the final days of December.
Year-end requests can require coordination among financial advisors, custodians, tax professionals, and charitable organizations. Processing times also become more important as the calendar runs out.
Starting earlier gives you time to verify the required amount, determine where the distribution should come from, decide what you want to do with the proceeds, and correct potential issues before the deadline.
Your RMD Is a Requirement. Your Strategy Isn't.
The IRS may tell you that money has to come out of a retirement account. It does not tell you how that distribution should fit into the rest of your financial life.
That is where planning comes in.
Instead of asking only, “Did I take my RMD?” consider asking:
How does this distribution affect my income this year? Is there a charitable opportunity I should consider? If I do not need the money, what should I do with it next? And does today's distribution fit with the retirement and legacy plan I want to maintain over the years ahead?
For something called a required minimum distribution, there are still quite a few decisions to make.
If your 2026 RMD is still sitting on your year-end to-do list, October is a good time to move it toward the top—and make sure you're treating it as a planning decision, not just a deadline.
1IRS.gov, Retirement Topics – Required Minimum Distributions (RMDs), accessed September 2026.
2 IRS.gov, Internal Revenue Bulletin 2026-06: Applicable Ages for Required Minimum Distributions, 2026.
3 IRS.gov, Publication 590-B: Distributions from Individual Retirement Arrangements (IRAs), 2025.