During your working years, you likely built much of your retirement savings in tax-advantaged accounts such as a 401(k) or a traditional IRA. Once you retire, the focus shifts from saving to withdrawing — and that can be when rules come into play that really matter. Understanding when you’re required to take distributions, how those withdrawals are taxed and what flexibility you may still have can help you manage income, control taxes and avoid unnecessary penalties.

What’s a required minimum distribution?

Required minimum distributions (RMDs) are withdrawals the IRS requires you to take from certain retirement accounts once you reach a specific age. For traditional IRAs and most employer-sponsored plans, such as a 401(k), RMDs generally must begin by April 1 of the year after you turn 73, though RMDs from a current employer’s plan can typically be delayed if you’re still working.

If you choose to wait until that April 1 deadline, it’s important to know you’ll have to take two distributions in the same year — one for the year you turned 73 and another for the current year — which will likely have tax implications. Each subsequent RMD will need to be taken annually by Dec. 31 to avoid missing the deadline for that year.

The amount you’re required to withdraw is based on your account balance and your age, using an IRS life expectancy factor. Missing an RMD can be costly: The penalty is 25% of the amount not withdrawn, though it may be reduced to 10% if the mistake is corrected in a timely manner.

Strategies to reduce, delay and better manage your RMDs

Knowing these strategies can help you manage the timing, tax impact and long-term role of your RMDs so they align more closely with your overall retirement goals.

Defer RMDs through employment

If you continue working in retirement and own less than 5% of the company, employment itself may allow you to delay RMDs from your current employer’s plan. RMDs from that plan generally don’t have to begin until April 1 of the year after you retire, even if you’re already past age 73. Here again, if you wait until the year after you retire to take your first RMD, you’ll need to take two RMDs in that year.

In some cases, rolling old 401(k) accounts or traditional IRAs into your current employer’s plan — if the plan permits — may also allow those assets to be included in this deferral. However, you’ll want to consider other potential trade-offs of rolling over, such as limitations on your investments and when you can take distributions.

Roth conversions over time

Large balances in traditional IRAs and 401(k)s can result in sizable RMDs later in retirement, while Roth IRAs and Roth 401(k)s are not subject to RMDs during the owner’s lifetime. For some retirees, gradually converting portions of traditional retirement assets to Roth accounts over time may help manage taxable income and reduce the impact of future RMDs.

It’s important to understand that an RMD cannot be converted — any required distribution must be taken first before converting additional assets. While Roth conversions offer potential benefits beyond RMD management, they also come with immediate tax costs and other trade-offs, so it’s important to work with a tax professional and consider this decision carefully.

Qualified charitable distributions

If you’re already planning to make charitable gifts, a qualified charitable distribution (QCD) can allow you to support causes you care about while also satisfying some or all of your RMDs. With this strategy, money is transferred directly from a traditional IRA to a qualified charity, and the amount distributed can count toward your RMD while being excluded from your taxable income — up to $111,000 per eligible IRA owner for 2026.

To be eligible, you must be at least age 70½, and the distribution must go directly from your traditional IRA to the qualified charity. It’s important to know that QCDs cannot be made to a donor-advised fund (DAF). Also, QCDs aren’t available from 401(k) plans, but rolling those assets into a traditional IRA may allow you to take advantage of this approach. For retirees who are charitably inclined, QCDs can be an effective way to manage taxes while giving.

How an Edward Jones financial advisor can help

By coordinating withdrawal timing and tax considerations, your Edward Jones financial advisor can help you understand how RMDs, Roth conversions and charitable strategies fit together within your broader retirement plan.