Don't Want RMDs Inflating Your Tax Bill? 3 Things You Can Try.

By Kailey Hagen, CFP – Mar 30, 2026 at 11:00AM ESTKey PointsYou don't have to take RMDs from all of your retirement accounts.You can avoid taxes on your RMDs by donating them to a qualifying charity.Roth IRA conversions can help you lower your RMDs in future years.You've been saving in your retirement account for decades, and even though you're now starting to take money out, it might not be fast enough for the federal government that's waiting for its cut of your savings. Once you turn 73, you have to start taking mandatory annual withdrawals, known as required minimum distributions (RMDs), from most retirement accounts. Unfortunately, if you don't need the money, that could drive up your tax bill. If you'd like to avoid that, try the three steps listed below. Image source: Getty Images. 1. Don't take RMDs when you don't have to You typically have to take RMDs from all of your tax-deferred accounts, which include traditional IRAs and 401(k)s. But if you're working, you can skip the RMD from your current 401(k) as long as you own less than 5% of the company. You can put off RMDs from this account until the year you retire. Doing this can help you minimize the amount you have to pay taxes on this year. 2. Donate your RMD to a qualifying charity The IRS won't tax your RMDs if you donate the money to a qualifying tax-exempt organization. This move is known as a qualified charitable distribution (QCD). You can do this for up to $111,000 in RMDs in 2026. But it's key that you don't withdraw the money yourself first. If you withdraw the funds and donate them to a charity, you may be able to write the donation off on your taxes, but it won't be a QCD. To do a QCD properly, you must tell your plan administrator where you want the money sent, and it must handle that transfer for you. You must complete all of your 2026 QCDs by Dec. 31, 2026 for them to count for that year. It's best not to wait until the last few weeks to do this, as the transfer request may take some time to process. 3. Do Roth IRA conversions to reduce future RMDs You aren't required to take RMDs from Roth accounts, so the more of your savings you can keep here, the lower your future RMDs will be. The catch is, to convert tax-deferred savings to Roth savings, you must pay taxes on those funds in the year of the conversion. For example, if you want to transfer $10,000 from your traditional IRA to a Roth IRA, the government will treat you as if you earned $10,000 more from your job than you actually did that year. And you won't have easy access to the converted funds to help you cover that tax bill. If you're unsure how a move like this will affect your taxes, it's best to speak with an accountant who can give you personalized advice. Then, you can decide whether you want to pay an upfront cost now to reduce your future RMDs, or if you'd rather take your RMDs as scheduled.Read NextMar 30, 2026 •By Kailey Hagen, CFPA Shocking Number of Americans Skip This Important Retirement Planning StepMar 30, 2026 •By Christy BieberIf You Invest $100 a Month in 2026, How Much Will You Have in Retirement?Mar 30, 2026 •By Kailey Hagen, CFPWant $7,500 in Monthly Retirement Income? Here's the Nest Egg You Need.Mar 30, 2026 •By Stefon Walters4 Estate Planning Moves to Make Before 2026 EndsMar 30, 2026 •By Stefon WaltersPlanning to Retire in 2035?

Read This Before You Collect Your First Social Security Check.Mar 30, 2026 •By Maurie BackmanHow to Use Your Tax Refund to Boost Your Retirement Savings in 2026About the AuthorKailey Hagen, CFP, is a contributing Motley Fool retirement analyst covering Social Security, Medicare, and retirement planning.

Before The Motley Fool, Kailey was a research analyst for Reviews.com focusing on credit and banking products. She is a Certified Financial Planner® and holds a bachelor’s degree in English from the University of Wisconsin-Madison.TMFKailey