Required Minimum Distributions & QCDs
Once you turn 73, the IRS requires you to start withdrawing a minimum amount from traditional IRAs, 401(k)s, and similar pre-tax accounts each year. RMDs can push you into higher tax brackets, increase Medicare premiums, and create tax problems that should have been planned for years earlier. We plan ahead so RMDs don't derail your tax strategy — and we use Qualified Charitable Distributions to give efficiently when charitable giving is part of your goals.
How we approach RMD planning
The best RMD planning happens five to ten years before RMDs begin. Strategies we use include:
- →Roth conversions in the years before age 73, reducing the pre-tax balance subject to future RMDs
- →Withdrawal sequencing that draws down pre-tax accounts strategically before they become required
- →Tax bracket management to avoid pushing into higher brackets when RMDs begin
- →Medicare premium planning (IRMAA) to avoid surcharges that RMDs can trigger
- →Annual RMD calculations and execution for clients in RMD years
Qualified Charitable Distributions (QCDs)
For clients who are charitably inclined and over age 70½, Qualified Charitable Distributions are one of the most tax-efficient ways to give. A QCD allows you to donate up to $108,000 per year (2025 limit, adjusted annually for inflation) directly from your IRA to a qualified charity. The amount counts toward your RMD but is excluded from your taxable income — a powerful benefit, especially for retirees who don't itemize deductions.
We help coordinate QCDs as part of your annual planning, working with you and your tax advisor to ensure they're executed correctly and reported properly.
About required minimum distributions & qcds.
When do I have to start taking RMDs?
Under current rules, RMDs begin at age 73 for most retirees (and will move to age 75 for those born in 1960 or later, per the SECURE Act 2.0). The first RMD can be delayed until April 1 of the year after you turn 73, but subsequent RMDs are due by December 31 each year.
What happens if I miss an RMD?
The penalty for missing an RMD is 25% of the amount you should have withdrawn (recently reduced from 50%). If corrected quickly, the penalty can sometimes be reduced to 10%. This is exactly why coordinated planning matters.
How does a QCD work?
You direct your IRA custodian to send a check directly from your IRA to a qualified charity. The amount counts toward your RMD but doesn't appear as taxable income on your return. The catch: it has to go directly from the custodian to the charity — you can't take the money out and then donate it.
Ready to see how required minimum distributions & qcds fits your plan?
The first 30 minutes are complimentary. We'll talk through your situation and whether we're the right fit.