Learning how to reduce required minimum distributions starts with one rule: once a required minimum distribution (RMD) is due for the current year, it cannot be skipped, rolled over, or converted, so the practical work is shrinking or offsetting future RMDs before they begin. The legal levers retirees weigh most often are Roth conversions before age 73, Qualified Charitable Distributions, Qualified Longevity Annuity Contracts, the still-working exception, and strategic withdrawals in low-income years.
You cannot legally skip an RMD once it is due, but you can reduce future RMDs by converting traditional IRA dollars to Roth before age 73, and you can offset the tax with a Qualified Charitable Distribution, which for 2026 lets IRA owners age 70½ or older exclude up to $111,000 from taxable income while satisfying the RMD (Source: IRS Notice 2025-67).
Can you actually avoid an RMD, or only reduce it?
You cannot avoid a required minimum distribution that is already due for the current year. Under IRS rules an RMD is not an eligible rollover distribution, so it cannot be rolled over or converted, and an amount not taken may face an excise tax (Source: IRS, Required minimum distributions FAQs, 2025). What retirees can influence is the size of future RMDs and the tax those distributions trigger.
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The strategies below fall into three buckets that are often confused. Some genuinely eliminate a future RMD on specific dollars, some reduce the balance future RMDs are calculated on, and some only offset the income tax without changing the RMD itself. Sorting each lever into the right bucket is what makes its real effect clear.
| Strategy | What it does | Effect on the RMD |
|---|---|---|
| Roth conversion before age 73 | Moves pre-tax dollars into a Roth account with no lifetime RMDs | Eliminates future RMDs on the converted dollars |
| Qualified Charitable Distribution (QCD) | Sends IRA money directly to charity, excluded from income | Offsets the tax; satisfies but does not eliminate the RMD |
| Qualified Longevity Annuity Contract (QLAC) | Defers RMDs on the sheltered amount to as late as age 85 | Reduces near-term RMDs on that money |
| Still-working exception | Delays RMDs from a current employer’s plan | Defers RMDs on that one plan only |
| Strategic pre-RMD withdrawals | Draws the balance down in low-income years | Reduces future RMDs by shrinking the balance |
For the underlying rules, divisor tables, and 2026 penalty figures, see our reference page on required minimum distributions for 2026. This guide focuses on the how-to of reducing and offsetting them.
At what age do RMDs start, and why does timing matter?
RMDs generally begin at age 73 for people who reach age 72 after December 31, 2022 (Source: IRS, Retirement topics, RMDs, 2025). The first RMD is due by April 1 of the year after you turn 73, called the required beginning date, and every later RMD is due by December 31 (Source: IRS Pub 590-B). Timing matters because it sets which strategies are still open to you.
Under the SECURE 2.0 Act, the applicable age rises to 75 for anyone who reaches age 74 after December 31, 2032, so the earliest year an age-75 RMD is due is 2035 (Source: SECURE 2.0 Act of 2022, Sec. 107). The years between retirement and the required beginning date, often called gap years, tend to be lower-income windows before Social Security and RMDs stack together. A conversion cannot include an RMD once distributions have started, so those gap years are when several levers are most flexible.
Which accounts are subject to RMDs?
RMDs apply to traditional IRAs, SEP and SIMPLE IRAs, and employer plans such as 401(k), 403(b), and profit-sharing plans (Source: IRS, RMD comparison chart, 2025). Roth IRAs have no lifetime RMDs for the original owner, and under SECURE 2.0, designated Roth accounts inside a 401(k) or 403(b) are no longer subject to RMDs during the owner’s lifetime. Knowing which accounts count tells you where each strategy can apply.
Strategy 1: Can converting to Roth before age 73 lower your RMDs?
Yes. Converting traditional IRA or 401(k) dollars to a Roth account before age 73 lowers the pre-tax balance that future RMDs are calculated on, because Roth IRAs carry no lifetime RMDs for the original owner (Source: IRS Pub 590-B). A Roth conversion is uncapped, is taxable as ordinary income in the year received, and is irreversible, with a December 31 deadline each year.
Many retirees weigh conversions during pre-RMD, pre-Social-Security gap years, when the converted amount fills a lower bracket rather than piling on top of RMDs later. The right amount interacts with your bracket, other income, and time horizon. Our guides on how much to convert to Roth and the Roth conversion break-even walk through that math.
Sequencing matters after your required beginning date. The year’s RMD must be taken first and cannot itself be converted, since an RMD is not an eligible rollover distribution. That ordering rule is a large part of why conversions aimed at reducing RMDs are usually evaluated before age 73. See our Roth conversion planning approach and the Roth conversion deadline for 2026.
Strategy 2: How do Qualified Charitable Distributions offset the tax?
A Qualified Charitable Distribution (QCD) lets an IRA owner age 70½ or older send money directly from an IRA to a qualified charity, excluding that amount from gross income while it counts toward satisfying the RMD (Source: IRS Pub 590-B). For 2026 the annual QCD exclusion is $111,000 per individual, up from $108,000 in 2025 (Source: IRS Notice 2025-67). A QCD offsets the tax; it does not remove the RMD.
Because the money never enters adjusted gross income, a QCD can also hold down income-driven thresholds discussed further below, which is one reason charitably inclined retirees compare it to taking the distribution and claiming an itemized deduction. A QCD comes from an IRA, not directly from a 401(k), so plan dollars are often rolled to an IRA first when charitable giving is the goal.
SECURE 2.0 also created a one-time election to fund a split-interest entity, such as a charitable remainder trust or charitable gift annuity, through a QCD. For 2026 that one-time limit is $55,000, up from $54,000 in 2025 (Source: IRS Notice 2025-67).
What about donor-advised funds?
A donor-advised fund (DAF) is a charitable-giving account that can produce an itemized deduction in the funding year. IRS rules do not permit a QCD to be made to a donor-advised fund (Source: IRC Section 408(d)(8)(B); IRS Pub 590-B). A DAF therefore offsets RMD-driven income through a deduction rather than an exclusion, a different mechanism that only helps if you itemize. Which fits depends on your deduction picture and giving goals.
Strategy 3: Can a QLAC defer part of your balance to age 85?
A Qualified Longevity Annuity Contract (QLAC) is a deferred annuity funded from an IRA or 401(k) that can push required distributions on that money to as late as age 85, removing the sheltered amount from the RMD calculation until payments start (Source: Treas. Reg. 1.401(a)(9)-6). This reduces near-term RMDs on the dollars placed in the contract while providing later-life income.
QLACs carry a lifetime premium limit set by the IRS and indexed for inflation. SECURE 2.0 replaced the old cap (25% of the balance or $125,000, later $200,000) with a flat dollar limit, and for 2026 the QLAC premium limit is $210,000 (Source: IRS Notice 2025-67). Because a QLAC converts liquid savings into a future income stream, it is a long-horizon tool, not a way to touch a current-year RMD. Suitability depends on longevity expectations, liquidity needs, and other income.
Strategy 4: How does the still-working exception work?
The still-working exception can delay RMDs from your current employer’s qualified plan until April 1 following the later of the year you turn 73 or the year you retire, provided you are not a 5% owner and the plan permits it (Source: IRS, RMD comparison chart, 2025). It applies only to the plan of the employer you currently work for, not to your other accounts.
The limits are strict. The exception does not apply to IRAs, where RMDs begin at 73 even while you are still employed. It does not apply to former-employer plans, and it does not apply to 5% owners, who must start RMDs by April 1 of the year after they turn 73. Some workers roll old plans into the current 401(k), if it accepts rollovers, so those dollars fall under the exception.
Strategy 5: Should you take withdrawals in low-income years before 73?
Taking larger voluntary distributions during low-income early-retirement years can shrink the pre-tax balance so that future RMDs, and the tax on them, are smaller. Because a required minimum distribution is based on the account balance, a lower balance in later years produces a lower required amount (Source: IRS Pub 590-B). The value of doing so depends on your current versus expected future bracket.
This lever pairs naturally with Roth conversions during gap years, since both move income into lower-income years before RMDs and Social Security stack up. The tradeoff is paying tax earlier, so many retirees size these withdrawals to a target bracket rather than emptying accounts.
What income thresholds do high-balance retirees have to weigh?
For retirees with large pre-tax balances, an RMD raises questions beyond the distribution itself, because RMD income is ordinary income and stacking it on Social Security and other income can cross several tax thresholds at once. The items below are general factors, and each applies differently by filing status and circumstances, so they are worth reviewing case by case.
- IRMAA Medicare surcharges. Higher modified adjusted gross income (MAGI) can trigger income-related monthly adjustment amounts on Medicare Part B and Part D. For 2026 the standard Part B premium is $202.90, and IRMAA begins above $109,000 MAGI for single filers and $218,000 for joint filers, on a two-year lookback (Source: Medicare).
- Net investment income tax (NIIT). The 3.8% NIIT applies to net investment income once MAGI passes $200,000 (single) or $250,000 (married filing jointly). An RMD is not itself net investment income, but it can push MAGI over the line. See our page on the net investment income tax for 2026.
- Social Security tax torpedo. Rising ordinary income can increase the taxable share of Social Security benefits, so an RMD can raise taxes on more than just the withdrawal.
- Survivor filing status. A surviving spouse often files as single in later years, which compresses the same RMD income into narrower brackets and can raise both tax and IRMAA.
Because a QCD keeps income out of AGI and a Roth conversion shifts future income out of the taxable column, these strategies are frequently evaluated for their effect on this threshold stack, not only the RMD line, and are generally worth modeling before acting.
Which strategy fits which situation?
No single lever fits everyone, and the choice tends to track age, balance, and charitable intent. The matrix below is a general framework, not a recommendation, and the right approach depends on your full tax picture. Each row lists an approach some retirees in that situation consider, with the reason it is commonly raised.
| Situation | Approach often considered | Why |
|---|---|---|
| Age about 60 to 67, retired, low current income | Roth conversions and strategic withdrawals in gap years | Lower-income years before RMDs and Social Security stack |
| Age about 68 to 72, near the required beginning date | Final Roth conversions; a QLAC in some cases | Last window to convert before RMDs and to defer part of the balance to age 85 |
| Age 73 or older, charitably inclined | Qualified Charitable Distributions | Satisfies the RMD while excluding up to $111,000 (2026) from income |
| Still working, not a 5% owner | Still-working exception on the current plan | Delays RMDs from that employer’s plan if it permits |
| Large balance, high MAGI | Multi-year Roth conversions modeled against thresholds | Manage IRMAA, NIIT, and Social Security taxation over time |
What happens if you miss an RMD?
Missing an RMD can be costly, which is why the deadlines matter. If a distribution is not taken or is too small, the IRS may impose a 25% excise tax on the amount not distributed as required, reduced to 10% if the shortfall is withdrawn within a two-year correction window (Source: IRS, Required minimum distributions FAQs, 2025). Under SECURE 2.0 this replaced the prior 50% penalty.
A missed RMD is reported on IRS Form 5329, which is also used to request a waiver of the tax for reasonable error, provided you take the shortfall and attach an explanation.
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Frequently asked questions
How can I reduce my required minimum distribution?
You can reduce future RMDs by converting traditional dollars to a Roth before age 73, by drawing the balance down in low-income gap years, and by placing part of the balance in a QLAC that defers distributions to as late as age 85. A Qualified Charitable Distribution does not reduce the RMD but keeps up to $111,000 (2026) out of taxable income.
How do I avoid paying taxes on my RMD?
You cannot make an RMD tax-free after it is paid to you, but a Qualified Charitable Distribution lets IRA owners age 70½ or older send up to $111,000 (2026) directly to charity, excluded from income while satisfying the RMD (Source: IRS Notice 2025-67). Reducing the pre-tax balance earlier through Roth conversions lowers the taxable RMD in later years.
At what age do RMDs stop?
Lifetime RMDs do not stop once they begin at age 73; they continue every year for traditional IRAs and pre-tax employer plans until death, when beneficiary rules take over. There is no upper age at which they end. Roth IRAs and, under SECURE 2.0, designated Roth 401(k) and 403(b) accounts never require lifetime RMDs for the owner.
Can I reinvest my RMD?
You cannot return an RMD to a tax-advantaged retirement account, because it is not eligible for rollover, but you can reinvest the after-tax proceeds in a taxable brokerage account. If you have earned income and are eligible, you may separately contribute to an IRA, which for 2026 is limited to $7,500, or $8,600 at age 50 or older (Source: IRS Notice 2025-67).
What is the best thing to do with your RMD if you don’t need it?
Options many retirees consider include a Qualified Charitable Distribution, which excludes up to $111,000 (2026) from income while satisfying the RMD, reinvesting the after-tax proceeds in a taxable brokerage account, or funding a Roth or traditional IRA if you have earned income. The right choice depends on your bracket, charitable intent, and the threshold effects above.
Can I convert my RMD to a Roth IRA?
No. An RMD is not an eligible rollover distribution, so it cannot be converted to a Roth IRA. If you are past your required beginning date, you must take the year’s RMD first, and only amounts beyond the RMD may be converted (Source: IRS Pub 590-A). Converting before age 73 avoids this ordering constraint, depending on your circumstances.
What is the penalty for not taking your RMD?
If you do not take the full RMD, the IRS may apply a 25% excise tax on the amount not distributed as required, reduced to 10% if you correct the shortfall within two years (Source: IRS, Required minimum distributions FAQs, 2025). SECURE 2.0 lowered this from the prior 50% tax. The shortfall and any waiver request are reported on Form 5329.
Sources
IRS, Retirement topics, Required minimum distributions (RMDs), 2025: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-required-minimum-distributions-rmds
IRS, Retirement plan and IRA required minimum distributions FAQs, 2025: https://www.irs.gov/retirement-plans/retirement-plan-and-ira-required-minimum-distributions-faqs
IRS, RMD comparison chart (IRAs vs. defined contribution plans), 2025: https://www.irs.gov/retirement-plans/rmd-comparison-chart-iras-vs-defined-contribution-plans
IRS Publication 590-B, 2025: https://www.irs.gov/publications/p590b
IRS Publication 590-A, 2025: https://www.irs.gov/publications/p590a
IRS Notice 2025-67 (2026 amounts relating to retirement plans and IRAs), 2025: https://www.irs.gov/pub/irs-drop/n-25-67.pdf
SECURE 2.0 Act of 2022, Public Law 117-328, Sections 107 and 202: https://www.congress.gov/117/plaws/publ328/PLAW-117publ328.pdf
Internal Revenue Code Section 408(d)(8) (qualified charitable distributions): https://www.law.cornell.edu/uscode/text/26/408
Treasury Regulation 1.401(a)(9)-6, Longevity Annuity Contracts, 79 Fed. Reg. 37633 (July 2, 2014): https://www.federalregister.gov/documents/2014/07/02/2014-15524/longevity-annuity-contracts
