RMD Reminders & Strategies: What to Know Before Year-End

📅 Key RMD Deadlines

• Traditional IRAs & 401(k)s: RMDs must be taken by December 31 each year.
• First-Time RMDs: Thanks to the SECURE 2.0 Act, the starting age for RMDs has increased.
• Inherited IRAs: Rules vary based on when the account was inherited and your relationship to the original owner. Don’t assume — ask.

👉 If you were born in 1951 or later, your first RMD is due the year you turn 73.

You can delay that first RMD until April 1 of the following year, but that means taking two RMDs in one calendar year — which could increase your taxable income.

• Inherited IRAs: Rules vary based on when the account was inherited and your relationship to the original owner. Don’t assume — ask.

✅ Roth IRAs (Original Owner)

• No RMDs required while the original owner is alive.
• This makes Roth IRAs a powerful tool for tax-free growth and legacy planning.

⚠️ Inherited Roth IRAs

• Yes, RMDs apply — but distributions are generally tax-free.
• Most non-spouse beneficiaries must fully distribute the account within 10 years under the SECURE Act rules.

💡 Smart RMD Strategies

1. Avoid the Penalty

Missing your RMD deadline can trigger a steep penalty — 25% of the amount not withdrawn. Timely action matters.

2. Consider a Qualified Charitable Distribution (QCD)

If you're 70½ or older, you can donate up to $100,000 directly from your IRA to a qualified charity. This satisfies your RMD and avoids taxable income — a win-win for you and your cause.

3. Strategic Withholding

Use your RMD to cover federal and state taxes. This can reduce the need for quarterly estimated payments and simplify your tax filing.

4. Coordinate with Other Income Sources

RMDs can push you into a higher tax bracket or trigger Medicare IRMAA surcharges. We help clients model the impact and explore mitigation strategies.

5. Review Beneficiary Designations

Ensure your retirement accounts reflect your current wishes. This affects future RMD rules for heirs and can streamline estate planning.

🧭 RMDs in the Bigger Picture

RMDs aren’t just a tax obligation — they’re a planning opportunity. Whether it’s funding charitable goals, managing tax brackets, or coordinating with Roth conversions, JT Stratford helps clients turn required distributions into strategic moves.

💬 Let’s Get Ahead of It

If you haven’t taken your RMD yet — or you’re unsure how it fits into your broader plan — now’s the time to act. Reach out to your JT Stratford advisor today to review your RMD strategy and ensure everything is aligned before year-end.