How to Reduce Your Required Minimum Distributions in 2026

Required minimum distributions (RMDs) begin at age 73 for most retirees — 75 if you were born in 1960 or later. Each year the IRS divides your traditional IRA and 401(k) balance by a life expectancy factor and requires you to withdraw at least that amount, paying ordinary income tax on every dollar. You can't opt out. But you can dramatically reduce what you're forced to take.

A $1,000,000 traditional IRA generates a $37,736 first-year RMD at age 73 — and the RMD grows each year as the divisor shrinks. Add Social Security and other income and many retirees find themselves in the 22–24% bracket on their RMDs, plus Medicare IRMAA surcharges if MAGI crosses $109,000 (single) or $218,000 (MFJ). Use the RMD calculator to see your projected schedule, then use this page to reduce it.

RMD Quick Reference: IRA Balance vs. First-Year RMD at Age 73

RMD = balance ÷ 26.5 (IRS Uniform Lifetime Table, age 73, T.D. 9917).³ Federal tax estimates are illustrative at a flat 22% marginal rate; your actual tax depends on all income, filing status, and deductions. IRMAA risk assumes Social Security of roughly $2,000/month adds ~$20,400 to MAGI.

6 Strategies to Reduce Your RMD

Strategy 1: Roth Conversions Before Age 73 (Highest Impact)

Every dollar converted from a traditional IRA to a Roth IRA today reduces the traditional IRA balance that future RMDs are calculated on. The effect compounds: $25,000 converted at age 65 removes roughly $39,800 from your age-73 RMD base (at 6% growth over 8 years), reducing your first-year RMD by about $1,503. Repeat annually and the cumulative savings are substantial — the calculator below quantifies it precisely.

The tax cost: you pay ordinary income tax on the converted amount. The strategy works best when you fill lower brackets without triggering higher rates or IRMAA. In 2026, the 12% ordinary income bracket tops at $100,800 taxable income for married filers — the first IRMAA tier begins at $218,000 MAGI for MFJ, $109,000 for single filers. Staying below IRMAA while filling the 12% bracket is the conversion sweet spot for most retirees.

Roth IRAs have no RMDs during your lifetime and grow tax-free. Money moved to Roth also reduces the ordinary income tax burden for heirs, who face a 10-year distribution window under the inherited IRA rules. Use the Roth conversion calculator for full bracket-fill and IRMAA analysis.

Strategy 2: Qualified Charitable Distributions (QCDs)

If you are age 70½ or older, a qualified charitable distribution (QCD) lets you transfer money directly from your IRA to a qualifying charity. The QCD counts toward your RMD and is excluded from your adjusted gross income — not just taken as a deduction. The AGI exclusion is more powerful than a deduction because it reduces your MAGI for IRMAA calculations, for the Social Security income taxation test, and for the 0% capital gains threshold.

The 2026 QCD limit is $111,000 per person ($222,000 for couples where both spouses have traditional IRAs).¹ SECURE 2.0 § 307 also created a one-time split-interest QCD of up to $55,500 per person — a transfer to a charitable remainder trust or charitable gift annuity — for those wanting a charitable income stream.

QCDs don't shrink your future IRA base the way conversions do, but they're the most tax-efficient RMD tool for charitable households. A couple donating $30,000/year to charity who routes that through QCDs instead of after-tax cash saves the taxes on $30,000 in RMD income every year — while also protecting their IRMAA tier.

Strategy 3: QLAC — Defer Up to $210,000 From the RMD Calculation

A Qualified Longevity Annuity Contract (QLAC) is a deferred-income annuity purchased with IRA or 401(k) funds that is entirely excluded from the account balance used to calculate RMDs. You invest up to $210,000 (2026 limit, inflation-indexed under SECURE 2.0 § 202);² that money exits the RMD calculation until the annuity begins paying — no later than the first day of the month after your 85th birthday.

Example: $900,000 IRA, buy a $210,000 QLAC at age 68. At age 73, only the remaining $690,000 (grown at 6% for 5 years to roughly $923,000) counts for RMDs. Without the QLAC, a $1,204,000 IRA base would produce a $45,434 first-year RMD. With the QLAC deferral, your RMD base is $923,000 — a first-year RMD of $34,830. Annual savings: ~$10,604, while the $210,000 continues to grow toward a guaranteed lifetime income stream starting at 80 or 85.

QLACs suit retirees who have sufficient liquidity elsewhere, want longevity protection past 85, and don't need that $210,000 accessible. They're a poor fit if estate value is your primary goal, since most QLACs provide limited death benefits.

Strategy 4: The Still-Working Exception

If you're still employed and actively participating in your current employer's 401(k), 403(b), or 457(b) plan, you can defer RMDs from that account until you retire — regardless of age. The exception applies only to the current employer's plan. IRAs and old 401(k)s from prior employers still require RMDs once you reach age 73 or 75.

The practical opportunity: if you're working part-time at 74 and your employer allows reverse rollovers, you may be able to roll an old 401(k) (not IRAs) into the current employer plan, deferring RMDs on that balance until you fully retire. This doesn't permanently reduce RMDs — it delays them — but extends the Roth conversion window.

Note: starting in 2024, Roth 401(k) and Roth 403(b) accounts eliminated lifetime RMDs under SECURE 2.0 § 325. The still-working exception matters primarily for traditional (pre-tax) plan balances.

Strategy 5: Strategic Withdrawals in Your 60s (Use the Golden Window)

The years between retirement and age 73 often feature an unusually low tax bracket: earned income has stopped, Social Security may not have started, and RMDs haven't begun. Every dollar you voluntarily withdraw from your traditional IRA now and reinvest in taxable accounts or convert to Roth reduces the balance that will compound into a larger RMD later.

The math: $20,000 voluntarily withdrawn at 65 removes $31,877 from your age-73 RMD base (at 6% growth over 8 years), reducing your first-year RMD by roughly $1,203. The question is whether the ordinary income tax rate you pay now is lower than the rate you'd pay on the equivalent RMD at 73. If you're in the 12% bracket now and expect to be in the 22–24% bracket when RMDs begin — especially combined with Social Security and IRMAA exposure — paying 12% today wins.

This strategy is effectively Roth conversions with the option to take the funds to a taxable account instead. See Roth conversions in retirement and tax-efficient withdrawal order for coordination details.

Strategy 6: NUA Strategy for Appreciated Company Stock

If your 401(k) contains highly appreciated employer stock, the Net Unrealized Appreciation (NUA) strategy lets you distribute shares in-kind and pay ordinary income tax only on your original cost basis, with the appreciation (the NUA) taxed at long-term capital gains rates — potentially 0% or 15% instead of 22–37% ordinary income.

Beyond the immediate tax savings, executing an NUA distribution removes the employer stock's full value from your 401(k) balance, reducing the account that future RMDs are calculated on. This is especially valuable for workers with company stock that has grown 5× or 10× — the stock moves out of the high-RMD traditional account permanently. Use the NUA calculator to compare the NUA path against an IRA rollover tax cost.

Strategy Comparison

How to Combine These Strategies

The most effective RMD reduction plans layer multiple strategies:

1. Ages 60–72: Annual Roth conversions — fill the 12% bracket ($100,800 MFJ taxable income in 2026) without crossing the first IRMAA tier ($218,000 MAGI for MFJ; $109,000 for single). Use the Roth conversion calculator to calibrate the annual amount. Execute NUA distributions in the same low-income window if eligible.
2. Age 70½+: Begin QCDs for all charitable donations. Stop writing checks to charities — route everything through QCDs to capture the AGI exclusion.
3. Ages 68–72: Consider a QLAC if you have excess traditional IRA funds and want guaranteed income protection past 85.
4. Ages 73+: Roth conversions can continue on top of the RMD (the RMD cannot itself be converted, but additional amounts above the RMD can be). QCDs remain available to satisfy the charitable portion each year.

For a broader view of how RMD planning fits into overall retirement tax strategy, see how to minimize taxes in retirement. For IRMAA impact modeling, see the IRMAA calculator.

1. IRS, Qualified Charitable Distribution rules. 2026 QCD annual limit: $111,000 per taxpayer (age 70½+ required). SECURE 2.0 § 307 one-time split-interest QCD: $55,500 per person. Source: IRS Notice 2025-26; IRS.gov retirement plan FAQs.
2. SECURE 2.0 Act of 2022, Div. T, § 202 (QLAC rule changes, effective Dec. 29 2022): eliminated 25% account balance limit; established $200K dollar limit, indexed to inflation. 2026 limit: $210,000. Treas. Reg. § 1.401(a)(9)-6. IRS QLAC Information Center.
3. IRS, Treasury Decision 9917, Life Expectancy and Distribution Period Tables Used for Purposes of Determining Minimum Required Distributions, effective Jan. 1 2022. Age-73 Uniform Lifetime Table factor: 26.5. IRS Publication 590-B (Distributions from IRAs).
4. SECURE 2.0 Act § 107 (RMD start age 73 for born 1951–1959, 75 for born 1960+); § 302 (missed RMD penalty 25%, reduced to 10% if corrected within 2 years); § 325 (Roth 401(k)/403(b) lifetime RMD elimination effective 2024). IRS SECURE 2.0 Act overview.
5. CMS, Medicare 2026 Part B Costs and IRMAA thresholds. IRMAA Tier 1 begins at $109,001 MAGI (single / MFS) and $218,001 MAGI (MFJ) for 2026. CMS Part B costs page.

Values verified as of July 2026. Tax law may change. Cross-check with IRS.gov before making financial decisions.