Key takeaways
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RMDs are mandatory withdrawals from many retirement accounts, generally starting at age 73 for traditional IRAs and employer plans.
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The main catalyst for action is tax management—with strategies that can reduce taxable income or defer withdrawals when eligible.
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Roth conversions can shift future withdrawals out of the RMD system, but they can create a tax bill and other downstream costs.
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Qualified charitable distributions (QCDs) can satisfy RMDs without generating taxable income—while also lowering the IRA balance used for later RMD calculations.
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The “still-working exception” may delay some RMDs for eligible participants in employer plans, but it requires formal plan approval and does not apply to IRAs.
Required minimum distributions (RMDs) force many retirees to start withdrawing money from certain retirement accounts, typically beginning at age 73. But for investors who would rather avoid the tax impact—or who do not need the cash—there are several IRS-sanctioned options that can change how and when withdrawals occur, depending on account type and eligibility.
What triggers RMDs and which accounts are affected
RMDs are the minimum amounts investors must withdraw each year from qualifying retirement accounts. The article notes that withdrawals generally begin at age 73 for several common account categories, including:
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Traditional IRAs
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SEP IRAs
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SIMPLE IRAs
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401(k)s
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403(b)s
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457(b)s
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Small business qualified plans
The practical implication for investors is that RMD planning often needs to start before the first withdrawal year, because several strategies require timing—either by reallocating assets in advance or by aligning withdrawals with specific tax rules.
Three strategies investors can use to manage or avoid taxable RMDs
1) Shift money into Roth accounts before RMD age
The article highlights Roth IRAs as a key planning tool because they are exempt from RMDs for the lifetime of the original owner. That means that moving assets from a traditional IRA or employer plan into a Roth IRA before RMDs begin can help eliminate future mandatory withdrawals from those converted dollars.
However, the timing matters. According to the article, the strategy tends to be most effective during years when retirement income is relatively low, because conversions can be taxed in the year they occur. It also notes that investors may face tax costs when converting funds, and withdrawing too much could lead to higher Medicare income-related monthly adjustment amounts (IRMAA) surcharges.
The article concludes that investors considering a Roth conversion should work with a financial or retirement advisor to ensure the move aligns with tax rules and personal cash-flow needs.
2) Use qualified charitable distributions to fulfill RMDs
If investors are required to take an RMD but do not want to treat the withdrawal as personal taxable income, qualified charitable distributions (QCDs) can be used to redirect RMD dollars directly to a qualifying charity. The article states that QCDs are an IRS-sanctioned approach that can satisfy RMD obligations while avoiding tax on the donated amounts.
Key conditions noted in the article include:
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The funds must come from an IRA.
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The donor must be at least age 70 1/2 to make a QCD.
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The transfer must be made directly from the IRA custodian to a qualified charity.
The article also lists several benefits. First, it says that if the donated amount is at least as large as the required withdrawal, investors generally avoid paying taxes on those distributed funds. Second, it provides a planning benchmark for giving: for the tax year 2026, it cites contribution limits of $111,000 for individuals and $222,000 for married couples. Finally, because a QCD reduces the IRA balance, it can also help lower future RMD calculations.
3) Check whether the “still-working exception” applies
The article points to a different set of rules for people who are still employed during the years when RMDs might otherwise begin. For eligible workers, RMDs from an employer’s qualified retirement plan may be postponed until retirement, provided they meet specific criteria—namely that they do not own more than 5% of the employer and are still working.
Two important limitations are emphasized. First, the article states the exception does not apply to IRAs. Second, it requires administrative action: the plan administrator must formally elect to allow the participant to delay RMD withdrawals from the employer’s qualified plan account.
For investors considering this route, the article recommends confirming with the plan administrator that the election is in place, since the ability to defer depends on plan operations rather than individual preference.
Market and tax planning implications for retirees
While RMD rules are often treated as a fixed requirement, the article underscores that the timing of withdrawals can be flexible in certain cases—particularly when investors can shift assets into Roth structures, direct RMD dollars toward charity, or defer withdrawals in specific employment scenarios.
From an investor standpoint, these choices can affect more than just the retirement account balance. Strategies that lower taxable income may help reduce sensitivity to broader tax thresholds, while approaches that reduce future IRA balances may change the size of later required withdrawals. At the same time, the article cautions that conversions and withdrawal decisions can carry trade-offs, including immediate tax liabilities and potential effects on Medicare-related surcharges.
What to watch next
Investors approaching RMD age may want to review their retirement income projections, confirm plan-level options with employers, and assess whether Roth conversions or QCDs fit their cash-flow and charitable plans. With RMD timing typically tied to age, the practical focus should be on acting before the first required withdrawal year and coordinating any strategy with current-year and future-year tax planning.
