By Daniel Korleski, MBA
Required minimum distributions (RMDs) are part of retirement planning for many people with tax-deferred accounts, but that doesn’t mean you have to approach them on autopilot. Timing RMDs to lower taxes can look like coordinating withdrawals with your other income, charitable giving, and broader tax strategy so you aren’t making these decisions in isolation.
For 2026, most retirement account owners subject to RMD rules generally begin RMDs at age 73. Roth IRAs and designated Roth accounts in 401(k) and 403(b) plans don’t require RMDs during the original owner’s lifetime.
Here are 10 considerations that can help you think more strategically about timing RMDs to lower taxes.
1. Understand RMD Rules
Before making decisions about timing, make sure you know how your RMD is calculated. In general, your RMD is based on your retirement account balance as of December 31 of the previous year and an applicable distribution period from IRS life expectancy tables.
Your first RMD is generally due by April 1 of the year after you reach age 73, although different timing rules can apply to certain workplace retirement plans. After that, RMDs are generally due by December 31 each year.
2. Think Carefully About Your First RMD
One of the biggest timing decisions comes in the first year you’re required to take an RMD. Although you can generally wait until April 1 of the following year to take that first distribution, doing so means you’ll also have another RMD due by December 31 of that same year.
Taking two RMDs in one calendar year could increase your taxable income, so it may make more sense to take the first distribution during the year you turn 73. The right choice depends on your broader income and tax picture.
3. Coordinate RMDs With Other Income
RMDs don’t happen in a vacuum. Social Security, pensions, investment income, employment income, and other withdrawals can all affect your taxable income during the year.
Coordinating these sources may help you manage your tax bracket and avoid creating an unnecessarily large income spike. Looking at your full-year income picture before taking distributions can give you more flexibility.
4. Use Qualified Charitable Distributions (QCDs)
If charitable giving is already part of your plan, consider a qualified charitable distribution.
In 2026, individuals age 70½ and older can generally make up to $111,000 in QCDs from an eligible IRA directly to qualifying charitable organizations. A qualifying QCD can count toward all or part of your RMD for the year.
Unlike a traditional charitable contribution, the tax benefit doesn’t come from deducting the QCD. Instead, an eligible QCD is generally excluded from taxable income, and you can’t also claim a charitable deduction for the same tax-free distribution.
5. Spread Withdrawals Over the Year
You don’t necessarily have to take your entire RMD at once. Taking distributions monthly or quarterly may make it easier to manage cash flow throughout retirement and reduce the pressure of remembering a large year-end withdrawal.
Spreading distributions throughout the year doesn’t inherently reduce the amount of income subject to tax, but it can make your RMDs easier to coordinate with your spending and broader financial plan.
6. Coordinate With Roth Conversions
Roth conversions can be a useful tool for managing future RMDs, particularly during lower-income years before RMDs begin. By converting a portion of a traditional IRA to a Roth IRA, you pay income tax on the converted amount now in exchange for potentially tax-free qualified withdrawals later.
Once RMDs begin, the RMD for that year generally must be satisfied before additional traditional IRA assets are converted to a Roth IRA. Planning conversions in the years leading up to RMD age may therefore provide greater flexibility and potentially reduce future RMDs.
7. Use Tax-Loss Harvesting Strategically
Tax-loss harvesting can still play a role in your overall tax strategy, but it’s important to understand how it interacts with RMD income.
Capital losses first offset capital gains. If your losses exceed your gains, you can generally use up to $3,000 of net capital losses per year ($1,500 if married filing separately) to reduce other income, including ordinary income, with additional unused losses generally carried forward.
That means tax-loss harvesting generally won’t offset a large RMD dollar for dollar. Instead, it can complement your broader tax strategy by reducing capital gains and, in some cases, a limited amount of other taxable income.
8. Plan Around Major Life Events
Selling a home or business, receiving significant investment income, beginning Social Security, or experiencing another major financial event can change your income picture for the year.
While you can’t simply skip an RMD because you have other income, you can coordinate the rest of your financial decisions around it. Looking ahead may help you avoid stacking several taxable events into the same year unnecessarily.
9. Avoid Procrastination
Waiting until late December to take an RMD can create unnecessary risk if paperwork, account transfers, holidays, or other administrative issues delay the transaction.
Failing to take the full RMD can result in a 25% excise tax on the amount that should have been withdrawn. That rate may be reduced to 10% when the shortfall is corrected within the applicable correction period.
Scheduling distributions earlier in the year can give you more time to address any issues before the December 31 deadline.
10. Consult a Financial Advisor
Timing RMDs to lower taxes on your own is challenging. That’s why personalized guidance from a professional financial advisor is critical for optimizing your approach. To reduce your tax liability and increase your retirement income, a financial advisor can analyze your income needs, examine possible tax ramifications, and create customized retirement plans.
Get Help Timing RMDs to Lower Taxes
Timing RMDs to lower taxes requires looking beyond a single annual withdrawal and considering how your distributions work alongside your income, investments, and broader retirement strategy.
At Cobalt Private Wealth, we bring those pieces together through comprehensive financial planning and investment management. From retirement and tax planning to investments, insurance, and legacy goals, we can help you create a coordinated plan for the years ahead.
Reach out to me at danielkorleski@cobaltprivatewealth.com or 719-332-3863 to schedule a meeting.
About Dan
Daniel Korleski is the President and CEO of Cobalt Private Wealth, leveraging over 30 years of industry experience (including managing over $2 billion at Wells Fargo) to help clients protect their wealth and strengthen their financial futures. An MBA graduate and member of the CFA Society Colorado, Dan is a dedicated community leader who currently serves as Board Chair for Catholic Charities of Central Colorado.
