Why Waiting Until December Can Limit Planning Opportunities

By Alaina Lotito

Financial Advisor at Investment Consulting Group

Published July 31, 2026

RMD Considerations: Why Waiting Until December Can Limit Planning Opportunities

For individuals age 73 and older, Required Minimum Distributions (RMDs) are a mandatory part of retirement income planning. While the deadline to take an RMD falls at year-end, waiting until December can reduce flexibility and limit opportunities for more strategic tax planning.

A more proactive approach, especially earlier in the year, can help support better coordination with tax planning, charitable giving strategies, and overall retirement income decisions.

For those searching for guidance on Required Minimum Distributions (RMDs), retirement withdrawal planning, or tax-efficient IRA distributions, timing can make a meaningful difference.

What Are Required Minimum Distributions (RMDs)?

RMDs are minimum amounts that must be withdrawn annually from certain retirement accounts once an individual reaches age 73 (based on current IRS rules).

These withdrawals are generally treated as ordinary income and may increase taxable income for the year. If RMDs are not taken on time, the IRS may impose significant penalties.

For individuals still working or managing multiple retirement accounts, understanding how and when to take RMDs is an important part of overall retirement planning.

Why December Is Often Too Late for RMD Planning

Although RMDs must be completed by December 31st each year, waiting until year-end can create challenges:

• Limited time to coordinate tax strategies 
• Reduced flexibility for charitable giving strategies 
• Less opportunity to evaluate account-level distribution options 
• Increased likelihood of rushed or reactive decisions 

Mid-year planning allows for a more intentional and coordinated approach.

Key RMD Planning Considerations

1. RMD Rules Across Multiple Accounts

RMDs can often be aggregated across multiple IRAs, meaning the total required amount may be withdrawn from one or more IRA accounts. However, retirement plans such as 401(k)s must be taken separately from each account.

Understanding account structure is important when planning withdrawal strategy.

2. Qualified Charitable Distributions (QCDs)

For eligible individuals, a Qualified Charitable Distribution (QCD) may be an effective way to satisfy RMD requirements while supporting charitable goals.

Key considerations include:

• In 2026, individuals may be able to direct up to $111,000 per person from an IRA to a qualified charity 
• QCDs can satisfy all or part of an RMD 
• The distribution is excluded from taxable income when properly executed 
• Funds must be transferred directly from the IRA custodian to the qualified charity 

Once funds are distributed to a personal account, they are no longer eligible to be treated as a QCD.

Coordination and timing are essential.

3. Tax Impact of RMDs

RMDs are generally taxed as ordinary income and can impact:

• Federal income tax brackets 
• Medicare premium thresholds 
• Taxation of Social Security benefits 
• Overall retirement income strategy 

Planning withdrawals strategically throughout the year may help manage these impacts.

4. Coordinating Spouses and Inherited IRAs

RMD planning becomes more complex when multiple account types or beneficiaries are involved.

This may include:

• Spousal coordination of withdrawals 
• Inherited IRA distribution rules 
• Multi-account withdrawal strategies 

These areas often present opportunities for more efficient tax outcomes when planned in advance.

Why Mid-Year Planning Creates More Flexibility

Mid-year is often the most effective time to evaluate RMD strategy because:

• Income and tax projections are more predictable 
• There is time to incorporate charitable giving strategies 
• Account coordination can be completed without year-end pressure 
• Planning decisions can be modeled rather than rushed 

By contrast, December often becomes a deadline-driven environment rather than a planning opportunity.

The Value of Early RMD Planning

Proactive planning allows individuals to:

• Reduce the likelihood of missed deadlines 
• Align RMDs with broader tax strategies 
• Incorporate charitable giving more efficiently 
• Improve coordination across multiple retirement accounts 
• Avoid last-minute distribution decisions 

The key advantage is simple: time creates options.

How Investment Consulting Group Can Help

At Investment Consulting Group, we help clients take a proactive approach to retirement income and distribution planning, including Required Minimum Distributions.

Our process includes:

• RMD calculation and distribution planning 
• Coordination across IRAs, 401(k)s, and inherited accounts 
• Tax-efficient withdrawal strategy design 
• Evaluation of Qualified Charitable Distribution opportunities 
• Integration of RMDs into broader retirement income planning 

Our goal is to help ensure RMDs are not just completed, but optimized as part of a broader financial strategy.

If RMDs are part of your financial plan this year, now is an ideal time to begin the planning process.

Resources

Interested in learning more?
Explore our articles, blogs, and educational videos on retirement planning, tax strategies, and wealth management:

Visit: ICG Website

Securities and investment advisory services are offered through Osaic Wealth, Inc. member FINRA/SIPC. Osaic Wealth is separately owned and other entities and/or marketing names, products, or services referenced here are independent of Osaic Wealth.