RMD Strategies for Retirees: Tips from Ed Slott (2026)

Bold statement: Retirees face a tax puzzle where timing, strategy, and future brackets can dramatically shape lifetime taxes—and getting it right matters more than ever. This rewrite preserves the core ideas from the original discussion with Ed Slott and Christine Benz about required minimum distributions (RMDs), but explains them in clearer terms, adds practical examples, and includes thoughtful prompts to spark discussion.

And this is the part most people miss: RMDs aren’t just a one-time withdrawal—they set the stage for your tax bracket for years to come, especially once you’re in the RMD territory. Understanding when to take them, how to use Roth conversions, and how to leverage qualified charitable distributions can save substantial tax dollars over a lifetime.

Key Points, Expanded

• Timing of RMDs matters, and waiting until year-end is common because it leaves room for other strategies like qualified charitable distributions (QCDs). QCDs can reduce the taxable income that would otherwise come from your RMD, and in some cases you may be able to delay taking the RMD entirely if you use QCDs first. This is a personal choice based on your cash flow, charitable goals, and tax situation.
• The first RMD deadline can tempt beginners to postpone until April 1 of the following year, but this approach often creates a double distribution in the next year. If the first RMD is delayed, you’ll typically owe two RMDs the next year, which increases taxable income and can push you into a higher tax bracket. In most scenarios, it’s wiser to take the first distribution in the year you turn 73 (or the current applicable age), then take a second distribution the following year if needed.
• Once RMDs have started, converting traditional IRA assets to a Roth IRA becomes more complicated. An RMD cannot be converted, and any conversion happens only after all applicable RMDs for the year are satisfied across all traditional IRAs. This means you may end up paying more in taxes in the year of conversion because you’re taxed on pre-conversion amounts and can’t roll over the RMD itself.
• There are no income limits for traditional IRA contributions, while Roth IRA eligibility has income-based limits. For high earners, the backdoor Roth strategy provides a way to move funds to a Roth by making a nondeductible traditional IRA contribution and then converting to a Roth. If still employed with earned income, this approach remains available and can influence overall tax planning.
• A long-standing principle, described as the “always” rule, is to minimize lifetime taxes by paying at the lowest possible rates—even if that means paying taxes now rather than later through RMDs. In practice, this might involve strategic Roth conversions or Roth contributions while rates are relatively favorable.

What Christine Benz and Ed Slott Discussed

• Should retirees wait to take RMDS? In many cases, taking RMDs near year-end is sensible, especially when integrating QCDs to offset taxable income. QCDs can effectively reduce the RMD’s tax impact since the distribution goes directly to charity and isn’t counted as taxable income. Timing becomes a personal decision based on goals, market expectations, and tax planning.
• First-time RMD timing: If turning 73 this year, taking the first RMD this year is generally preferable to delaying, to avoid a double RMD next year. There are exceptions if next year’s expected income is dramatically lower or if substantial deductions will offset a larger RMD, but in most cases a steady approach over two years is better for tax predictability.
• Reducing RMDs: The main tools are Roth conversions (before RMDs begin) and QCDs once RMDs are in effect. Withdrawn RMD funds can be used for Roth contributions or to pay taxes on conversions, but the RMD itself cannot be rolled over or converted. Strategic conversions before RMDs start can significantly lessen future required withdrawals.
• Can RMDs be reinvested into a Roth IRA? If still working and having eligible earned income, directing funds toward a Roth is possible via the backdoor Roth pathway or through eligible contributions, depending on the taxpayer’s income limits. After you’ve taken the RMD, the money in hand can be used for any purpose, including contributing to a Roth with earned income or paying the tax on conversions.
• Earned income and IRA contributions: There are no income limits for traditional IRA contributions, but Roth contributions are subject to income limits. The backdoor Roth remains a viable route for high earners who want Roth exposure. This planning can influence when and how to convert or contribute.
• Accelerating RMDs: A contrarian view argues for accelerating distributions in some cases due to the prospect of higher future tax rates and the possibility of current lower tax brackets. The logic highlights that today’s historically low tax rates may not last, and paying taxes at today’s lower rates could be advantageous for the long run. Individuals should consider their future bracket expectations, the size of their IRA, and estate planning implications, especially with rules like the 10-year distribution window that applies after death under certain regulations.

Practical Takeaways for Beginners

• If you’re new to RMDs, plan your withdrawals with an eye toward multi-year tax efficiency. Use QCDs when appropriate to reduce taxable income.
• Don’t automatically defer the first RMD to next year unless you have a clear tax strategy that benefits from a double distribution. In most cases, taking the first RMD in the current year is preferable.
• Consider Roth conversions before RMDs begin to minimize the tax impact of later withdrawals. Convert enough to stay ahead of future tax brackets without triggering excessive current-year taxes.
• Remember the backdoor Roth option if earned income exceeds traditional Roth limits. This can help you gain Roth exposure even in higher income years.
• Reevaluate the strategy regularly. Tax laws change, and personal circumstances evolve. A flexible approach that adapts to new rules and changing income levels is key.

Discussion question for readers: Do you think accelerating RMDs is a wise move given the possibility of future tax increases, or do you prefer maximizing tax-advantaged growth while rates are low? Share your perspective and experiences in the comments.

If you’d like to explore more actionable strategies for RMDs and Roth conversions with concrete numbers tailored to your situation, consider scheduling a session with a tax- and retirement-planning professional.