RMD Timing Mistakes That Can Cost Retirees More Than They Expect
(And how QCDs can quietly reduce the tax impact)
Once you reach required minimum distribution (RMD) age, when and how you take distributions matters just as much as how much you take.
We often see retirees meet their RMD requirements — but still create avoidable tax and Medicare issues because of timing, withholding decisions, or missed charitable planning opportunities.
Here are three common RMD-related mistakes we see before filing.
Mistake #1 – Waiting until late in the year without a tax plan
What happens
An RMD is taken late in the year without considering withholding or how it interacts with other income.
Why it matters
A large year-end distribution can push total income higher than expected, creating:
higher taxes
higher estimated payments the following year
and in some cases, higher Medicare premiums
Self-audit tip
Look at the month your RMD was taken and whether any tax was withheld.
If you owed more than expected at filing, timing and withholding are worth reviewing.
Mistake #2 – Charitable giving is done from checking instead of from the IRA
What happens
You give regularly to charity — but all donations are made from a bank account rather than directly from your IRA.
Why it matters
If you are age 70½ or older, a Qualified Charitable Distribution (QCD) may allow you to satisfy part of your RMD and exclude that amount from taxable income.
This can help reduce:
adjusted gross income
taxable income
and potentially future Medicare premiums
Self-audit tip
If you made charitable gifts and also took an RMD, review whether any portion could have been completed as a QCD.
Mistake #3 – RMDs are completed correctly… but without coordination
What happens
RMDs are technically correct, but they are not coordinated with:
Roth conversions
capital gains
or other income events during the year
Why it matters
RMDs often stack on top of other income and can quietly push total income into a higher tax or Medicare threshold.
Self-audit tip
Review what other income occurred in the same year as your RMDs — especially conversions, bonuses, or large investment distributions.
A quick RMD and QCD self-check
Before your return is finalized, review:
When your RMD was taken
Whether any withholding was elected
Whether you made charitable gifts during the year
Whether you are age 70½ or older
Whether other large income events occurred in the same year
If two or more of these apply, it may be worth a short pre-filing review.
Get help reviewing your RMD and QCD decisions
If you are unsure whether your RMD timing or charitable strategy could be improved, a short review before filing can help.
In a 30-minute Pre-Filing Review, we will:
review your RMD and QCD activity
coordinate with your tax professional as needed
and give you a clear filing checklist
