When Should You Start Planning for Required Minimum Distributions?

By RMDCalculators.com · Published October 14, 2026

Failing to plan ahead for your required minimum distributions (RMDs) could push you into a higher tax bracket, increase your Medicare Part B and Part D premiums through the income-related monthly adjustment amount (IRMAA), and lead to other costly tax consequences. So, when should you begin planning for your required minimum distributions? Let’s explore that question.

How the Required Minimum Distribution Age Has Changed

Over the past few years, lawmakers have increased the age at which you must begin withdrawing a minimum amount from certain pre-tax retirement accounts, such as traditional IRAs and pre-tax 401(k)s. Previously, RMDs began at age 70½. The original SECURE Act increased that age to 72, and SECURE 2.0 raised it to 73 for affected individuals, with a further increase to 75 scheduled for younger age groups. Your applicable starting age depends on your year of birth.

But does a later starting age mean you can afford to delay planning for your required minimum distributions?

The Cost of Starting RMD Planning Too Late

Recently, I was involved in a case analysis for a client who had done an excellent job saving for retirement but lacked tax diversification. The client had already retired and did not need to withdraw money from their traditional IRA. They had other resources, including Social Security, a pension, and approximately $1 million in inherited funds, which they were using to cover their expenses.

Because of those other resources, the client did not expect to draw from their IRA for a long time. However, they were only a couple of years away from the start of their required minimum distributions. Once those withdrawals began, their projected taxable income would increase significantly, pushing them into a higher tax bracket and moving them up two IRMAA tiers.

At that point, their options for reducing the impact were limited. They had started planning too late, leaving little time to make adjustments before the required withdrawals began.

Understand the RMD Rules Early in Your Career

So, when should you start planning for your required minimum distributions? It is tempting to say, “It’s never too early.” Although that sounds reassuring, it does not give you a practical timeline. I would distinguish between understanding the rules and actively planning around them.

You should understand the basic RMD rules early in your career. If you and your financial planner decide that pre-tax contributions are appropriate for your situation, you should recognize what that decision means. Contributing to a pre-tax retirement account generally defers taxes; it does not eliminate them. Eventually, withdrawals will generally be taxable, and you may be required to withdraw a minimum amount each year once you reach your applicable RMD age.

You can withdraw more than the required minimum, but those additional withdrawals may also affect your taxes. Understanding this relationship helps you make more informed decisions about where to save throughout your career.

Traditional IRAs and pre-tax 401(k)s generally come with required minimum distributions. Roth IRAs and Roth 401(k)s do not require distributions during the original owner’s lifetime, and health savings accounts do not have RMDs. You should be aware of these differences even before detailed retirement planning becomes a priority.

Begin Active RMD Planning Five Years Before Retirement

When should that awareness turn into active planning? The answer depends on your circumstances, but I would suggest beginning at least five years before you expect to retire.

Why five years? By that point, your retirement plans are usually becoming clearer. You have a better idea of when you want to stop working, how much you expect to spend, and which income sources will support you. Those details make it easier to assess the potential impact of future required minimum distributions.

Earlier in your career, a retirement plan still has value, but it relies heavily on assumptions that may change. Your income, expenses, family circumstances, and retirement goals can evolve significantly over time. Five years before retirement, those assumptions may still shift, but they are generally closer to what your actual retirement will look like.

Why Your Retirement Assumptions Need to Be Revisited

Here is an example. A few decades ago, we helped an individual develop a retirement plan early in their career. At the time, they believed they would be comfortable spending approximately $30,000 per year because that reflected their current expenses. We built a plan around that expectation, allowing for inflation, and the numbers worked well.

That individual is still working today and now earns more than $30,000 per month. Their financial circumstances have changed dramatically, and their expectations for retirement have changed along with them. This illustrates why a plan developed decades before retirement needs to be revisited as life unfolds.

Beginning detailed RMD planning about five years before retirement gives you a more relevant picture of your future. You can assess what retirement may look like, how required minimum distributions might affect your income and taxes, and which adjustments could make sense before you stop working.

Connect Required Minimum Distributions to Your Retirement Income Plan

As your retirement plan becomes clearer, so does your income plan. You can estimate your spending, consider when to claim Social Security, and evaluate how pensions, savings, and retirement accounts will work together. Those decisions also shape your tax situation.

For example, you may expect to begin withdrawing from your pre-tax retirement accounts as soon as you retire. If those withdrawals will already exceed your required minimum distributions once RMDs begin, meeting the minimum withdrawal requirement may not require a separate strategy. You will still need to consider the tax effects, but the required withdrawal itself may already be covered by your income plan.

Alternatively, your income plan may show that you can cover your expenses using other sources while leaving your traditional IRA untouched. In that situation, your tax picture could look very different before and after required minimum distributions begin.

Recognizing that difference while you still have several working years ahead gives you more time and choices. You can review your savings strategy, consider how future withdrawals may affect your taxes, and make adjustments before retirement.

Review Your Contributions and Roth Conversion Options

For example, you might reconsider how you divide new contributions between pre-tax and Roth accounts. If projected RMDs are likely to increase your taxable income substantially later, directing some future savings toward Roth accounts may be worth discussing with your financial planner.

Roth conversions may also be part of that discussion, although their timing matters. During the final years of your career, your income may be near its highest level, which could make conversions less attractive. However, circumstances vary. In a two-income household, one spouse may retire before the other, potentially creating a period of lower household income in which conversions could be considered.

Planning ahead can also help you evaluate Roth conversions during the early years of retirement. Depending on your situation, there may be a period between retirement and the start of Social Security or required minimum distributions when your taxable income is lower. Understanding that potential window in advance allows you to consider how it fits into your broader retirement plan.

Bring Your Retirement and Tax Planning Together

The key is to connect your retirement goals, income sources, savings strategy, and tax planning. These decisions influence one another. Looking at required minimum distributions in isolation may cause you to miss opportunities that become clearer when you examine the whole picture.

About five years before retirement, that picture is often detailed enough to support meaningful planning while still leaving time to make changes. You may have several years of earnings remaining, opportunities to adjust contributions, and time to prepare for decisions you will make after retirement.

When it comes to required minimum distributions, failing to plan ahead can cost you thousands of dollars. Understand the rules throughout your career, and begin evaluating their impact well before retirement so you have time to make informed decisions.

Comparing the Main Withdrawal Schedules

For standard account-owner RMDs, installment payments must add up to the annual requirement by the applicable deadline. Our first RMD deadline guide explains the first-year April 1 option and the usual December 31 deadline for later years. See IRS Publication 590-B for the installment rules.

Conclusion

A later RMD starting age does not remove the need to plan ahead. Understanding the rules early and beginning detailed planning at least five years before retirement can give you more time to evaluate your income sources, review your savings strategy, and consider the potential tax impact of future withdrawals. The right approach depends on your circumstances, so discuss how required minimum distributions fit into your overall retirement plan with your financial planner.

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