Every year around this time, I start having the same conversation with a lot of folks: “Joe, do I really have to take my RMD this year?” And the answer, as much as I’d love to sugarcoat it, is yes — the IRS doesn’t make exceptions just because you’re busy with pumpkin pies and travel plans.
Here’s the thing: Required Minimum Distributions (RMDs) can sneak up on you faster than Christmas decorations at the grocery store. If you’re 73 or older (or you inherited a retirement account), the clock is ticking to take those distributions before year-end — or face a hefty penalty. And trust me, nothing ruins a perfectly good New Year’s Eve like realizing you owe a 25% excise tax because the RMD slipped through the cracks.
That’s why I like to get ahead of it now. We can look at your accounts, calculate exactly what needs to come out, and figure out the smartest way to handle it — whether that’s taking it in cash, transferring it to a taxable account, or even using it for charitable giving through a Qualified Charitable Distribution (QCD).
Here’s what you can do before the holiday rush hits:
- Confirm your total RMD amount.
Different accounts mean different rules — and the math isn’t always simple. Let’s get the right number early. - Decide how you want to take it.
A lump sum? A few smaller payments? There’s flexibility here, and planning ahead gives you options. - Think about taxes.
RMDs count as taxable income. We’ll make sure your withholding and estimated payments line up so April doesn’t bring any surprises. - Explore giving options.
If charitable giving is on your list this year, a QCD from your IRA might be the most tax-efficient way to do it — and it counts toward your RMD.
The goal here isn’t just checking another box for the IRS. It’s making sure your money keeps working for you — and that you can enjoy the holidays without worrying about deadlines or penalties.
Let’s handle your RMD now, so when December rolls around, your biggest decision is eggnog or hot chocolate.
Please contact us through the contact page HERE, directly to Joe Lind at jlind@dinergywealth.com or call Joe at 513-878-0195. Remember, we focus on growth – done CONFIDENTLY.
