RMD Strategies

RMD basics

• Required at age 73 (SECURE Act 2.0 — was 72, now 73, soon 75).
• Applies to: traditional IRA, 401(k), 403(b), 457, SEP, SIMPLE.
• NOT required: Roth IRA (lifetime). Roth 401k starting 2024.
• First RMD by April 1 of year after turning 73.
• After that, December 31 deadline annually.
• Penalty: 25% of missed amount (was 50%, reduced 2023).

Calculate RMD

RMD = balance Dec 31 prior year ÷ life expectancy factor (IRS table).

• Age 73 — divide by 26.5.
• Age 75 — divide by 24.6.
• Age 80 — divide by 20.2.
• Age 90 — divide by 12.2.
• Most brokerages calculate FOR you — Vanguard, Fidelity, Schwab.
• Just check + withdraw.

Tax-smart strategies

• QCD (Qualified Charitable Distribution) — give RMD directly to charity. Up to $108K (2025). Counts toward RMD. NO income tax.
• Convert to Roth BEFORE 73 — pay tax now at lower rate, no future RMD.
• Spread big withdrawals — manage IRMAA + tax brackets.
• Withhold tax from RMD — easier than estimated payments.
• "In-kind" distribution — transfer stocks rather than sell. Same RMD value, no immediate sale.

Multiple IRAs

• Calculate RMD for EACH IRA.
• Can withdraw TOTAL from any one or multiple.
• 401(k) RMDs separate — must take from each 401k.
• Consolidating to one IRA simplifies — and easier for heirs.

Free calculators

• Bankrate RMD calculator — free.
• Schwab, Fidelity, Vanguard sites have RMD calculators.
• IRS Publication 590-B — official rules.
• Boldin / Empower — multi-year RMD planning.