September 2026

Required Minimum Distributions: What Actually Shapes Your Strategy

Somewhere around age 73 (this will change to 75 in a few years), the IRS stops asking politely. Required minimum distributions — the mandatory withdrawals from traditional IRAs and 401(k)s — kick in, and for the first time, after decades of saving, you are required to withdraw money whether you need it or not.

It’s tempting to think of RMDs as a single calculation: divide your account balance by a life-expectancy factor, write the check, you’re done. And mechanically, that’s exactly right. But “how do I meet my RMD?” and “what’s the best RMD strategy for me?” are two different questions. The first is arithmetic. The second depends on a handful of things that have nothing to do with your birthday.

You may think of 73 as the trigger — the year the whole conversation starts. In practice, it often makes sense to start thinking about this much earlier. In your 60s, or even sooner, you want to begin to strategize about this.  A powerful tool to optimize your tax bill is to do Roth conversions before you are required to distribute funds from your IRA: moving money out of a traditional IRA and into a Roth while you’re in a lower tax bracket, before Social Security and RMDs are both increasing your taxable income, which then raises your tax bracket. Done thoughtfully over several years, this strategy can shrink the tax bill on distributions you won’t be required to take for another decade or more.

Age sets the clock, not the strategy

Age still matters, of course. In 2026, RMDs begin at age 73 (that threshold rises to 75 starting in 2033), and the required distribution amount each year is simply your prior year-end balance divided by an IRS life-expectancy factor that shifts a little every year. That part is non-negotiable and is the same for everyone.

What age doesn’t tell you is whether you should take only the minimum, take more, give some of it away, or convert some of it to a Roth years before RMDs ever start. Those decisions come down to a few other factors — and, usually, one in particular does most of the work.

Your tax picture is the real driver

For most people, the single biggest input isn’t the size of the account — it’s where you sit on the tax spectrum, now and later. That’s exactly why the earlier Roth conversion window matters so much. Someone already in a high tax bracket today is often focused on the opposite goal: keeping reported income down now rather than accelerating it.

That’s also where Medicare quietly enters the picture. Because IRMAA — the income-related surcharge on Medicare Parts B and D premiums — is based on tax return income from two years prior, a larger-than-necessary RMD or Roth conversion today can mean higher Medicare premiums two years from now. It’s one of the more overlooked reasons why “just take the minimum” isn’t always the right choice.  We’ve included a companion checklist that walks through important questions to consider.

What you own matters more than the total

Two households with identical net worth can have very different RMD strategies if the money sits in different places. A large traditional IRA relative to Roth and taxable holdings means a higher future tax bill already baked in — and more reason to address it early, through conversions or other planning. A portfolio already spread across account types has more flexibility.

Do you actually need the money?

If the RMD is part of covering your living expenses, the strategic question is mostly about timing and tax withholding, not avoidance. If you don’t need it, other options open up. A qualified charitable distribution (QCD) — sending some or all of an RMD directly from your IRA to a qualified charity — lets you satisfy the requirement without ever reporting the income as taxable, up to $111,000 per person in 2026 (double that for a married couple giving from separate IRAs). For anyone already inclined to give, it’s often the single most tax-efficient way to meet an RMD.

Marriage adds a layer

RMDs are calculated per person, not per household, and IRAs can only be combined for RMD purposes with other IRAs owned by the same person — not a spouse’s, and not a 401(k), which has its own separate requirement. A couple’s real strategy is usually two coordinated schedules: different ages, sometimes different tax brackets, and decisions about whose accounts to draw from first.

A few longer-view questions

Health, longevity expectations, and legacy goals are other important considerations. Converting funds to a Roth can make sense not just for your own future tax bill, but because Roth assets typically pass to heirs more favorably than traditional IRA assets.

Alternatively, if you are leaving all or a large portion of your assets to charity, then don’t bother with a Roth, as those assets will pass to an entity who doesn’t pay any taxes and, therefore, you will have paid taxes in advance which would never have needed to be paid.  If leaving money to family — or to charity — is part of the plan, that shapes the RMD conversation years before the first distribution is even due.

The takeaway

Age tells you when the clock starts. Everything past that — how much to take, whether to convert, whether to give, how to coordinate between spouses — comes down to your tax situation, what you actually need to live on, how your assets are structured, and what you want the money to do beyond age 73. It is rarely one factor working alone. That is exactly why an RMD strategy is worth reviewing with your advisor well before the year you turn 73, not the week of. 

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Mosaic FI, LLC is a Registered Investment Adviser, registered with the SEC and in other states where required, unless otherwise exempt. Registration does not imply a certain level of skill or training.  Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies.  Investments involve risk and, unless otherwise stated, are not guaranteed.  Be sure to consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.  

The opinions expressed herein are those of Mosaic FI, LLC as of September 1, 2026, and are subject to change without notice. This material is provided for general informational and educational purposes only and should not be construed as personalized investment, legal, or tax advice. While Mosaic FI, LLC believes this information to be current and valuable to its clients, and does not contain untrue statements of material facts, or misleading information, Mosaic FI, LLC provides these links on a strictly informational basis only and cannot be held liable for the accuracy, time-sensitive nature, or viability of any information shown on these sites. 

Required minimum distributions generally do not begin until an individual reaches the applicable age under federal law. However, planning for the potential tax and financial effects of future RMDs may be beneficial several years earlier. Factors to consider may include anticipated retirement income, tax brackets, charitable-giving goals, Roth conversions, account types, beneficiary designations, and whether an employer-plan exception applies. The appropriate strategy will depend on each individual’s circumstances. Before taking any action, consult your financial and tax professionals regarding the RMD rules and planning strategies applicable to your accounts.