Complete RMD & Retirement Distribution Planning Guide

Planning RMDs well is less about this year's withdrawal and more about the multi-year choreography: Roth conversions before RMDs kick in, QCDs to stay under IRMAA thresholds, and distribution sequencing that protects tax-advantaged growth. This guide walks the full picture.

The rules (post-SECURE Act 2.0)

• RMD age: 73 for those born 1951-1959; 75 for those born 1960 or later.¹
• Accounts affected: Traditional IRA, 401(k), 403(b), 457(b), SEP, SIMPLE. Roth IRAs have no lifetime RMDs for the original owner. Starting 2024, Roth 401(k)s also have no lifetime RMDs (SECURE 2.0 change).²
• Calculation: Prior-year December 31 balance ÷ IRS Uniform Lifetime Table divisor (Treas. Reg. 1.401(a)(9)-9, updated 2022).³
• Deadline: December 31 each year. First-year RMD can be delayed to April 1 of the following year (the "Required Beginning Date") — but this stacks two RMDs in one year, usually disadvantageous.
• Penalty: 25% of the under-distribution (reduced from 50% by SECURE 2.0 in 2023). Reducible to 10% if corrected within a 2-year correction window.⁴

Stage 1 — Pre-RMD: the Roth conversion window

Between retirement (earned income stops) and RMD age, most retirees are in their lowest tax bracket since their 20s. This is the golden planning window. Priorities:

• Convert to fill the 12% and 22% brackets. Running the bracket boundaries precisely lets you move $100-200K/yr into Roth without crossing into 32%.
• Integrate with Social Security timing. Claiming SS at 70 instead of 62-67 increases the window where SS isn't yet adding to income.
• Watch IRMAA thresholds. Medicare surcharges kick in above $218,000 MFJ / $109,000 single in 2026 (two-year lookback: 2024 MAGI drives 2026 premiums).⁵ Plan conversions against these tiers to avoid cliff jumps.
• Consider 5-year rule. Converted funds have their own 5-year holding clock for penalty-free access.

Stage 2 — Active RMD years (73+)

• Qualified Charitable Distributions (QCDs). From age 70½, donate up to $111,000/yr in 2026 directly from IRA to a qualified 501(c)(3) charity.⁶ The distribution counts toward the RMD but is excluded from your income — reducing AGI and keeping you under IRMAA tiers. Separate $55,000 one-time QCD permitted to a split-interest vehicle (CRT, CGA) under SECURE 2.0.
• RMD aggregation rules. Multiple IRAs: total RMD calculated, can be taken from any one or combination. 401(k)s: must be taken from each account separately. Different rules matter.
• Spousal RMD strategy. Spouse is beneficiary of your IRA: at your death, can roll to own IRA (restart own RMDs based on their age). Spouses who are 10+ years younger: Joint Life Expectancy Table produces smaller RMDs than Uniform Lifetime Table.
• Health shocks. Long-term care expenses create medical-deduction opportunities — high-deductible years are good RMD years. Opposite for years with large itemized deductions elsewhere.

Stage 3 — Inherited IRA (for beneficiaries)

When you inherit an IRA from a non-spouse, the SECURE Act requires full drainage within 10 years. Planning dimensions:

• Annual RMDs still required if the decedent was already taking RMDs. Skipping pro-rata each year + final balance year 10 creates a stacked final-year tax bomb.
• Coordination with your own low-income years. If you're retiring within the 10-year window, timing distributions into low-bracket years saves meaningful tax.
• Eligible Designated Beneficiary (EDB) exceptions. Surviving spouse, minor child, disabled/chronically ill individual, or beneficiary ≤10 years younger — these get stretched distribution options.

Common mistakes

• Waiting until age 73 to think about RMDs. The key planning window is 60-72.
• Taking RMDs from taxable brokerage account rather than IRA (doesn't satisfy the requirement).
• Missing the April 1 extended deadline for first RMD (then stacking two RMDs in year 2).
• Not using QCDs when already giving charitably — leaving meaningful tax savings on the table.
• Converting to Roth without modeling IRMAA impact — a Roth conversion that triggers $3K of Medicare surcharges changes the math.
• Leaving inherited IRA on autopilot and hitting year-10 with the full balance to distribute at once.

Sources

1. SECURE 2.0 Act (Consolidated Appropriations Act, 2023) § 107 — Increase in age for RMDs.
2. IRS — Retirement Topics: Required Minimum Distributions. SECURE 2.0 § 325 eliminated Roth 401(k) lifetime RMDs starting 2024.
3. IRS Publication 590-B — Uniform Lifetime Table. Table updated effective 2022 (Treas. Reg. 1.401(a)(9)-9).
4. IRC § 4974 — Excise Tax on Missed RMDs. Rate reduced 50% → 25% by SECURE 2.0 § 302.
5. Kiplinger — 2026 IRMAA Brackets. First tier: $109,000 single / $218,000 MFJ.
6. IRS — QCDs. 2026 limit: $111,000 (indexed annually per SECURE 2.0).
7. T.D. 10001 — Final RMD Regulations (July 2024). Clarifies annual RMDs during inherited-IRA 10-year window.

Tax values verified as of April 2026. RMD rules updated by SECURE Act (2019) and SECURE 2.0 (2022) with IRS final regulations in July 2024. Confirm your specific situation with a specialist.