If you’re taking required minimum distributions, you probably know December 31 is the deadline. What’s easy to miss is how much of the decision is still open with about two months to go. How you take the money, and where it goes, can change your tax bill for the year.

Let’s walk through the 2026 rules, the mistakes that trigger penalties, and a charitable move that many retirees in Southlake, Colleyville, and Keller never use.

Who Has to Take One

A required minimum distribution (RMD) is the amount the IRS forces you withdraw each year from pre-tax retirement accounts, because the tax on that money has been deferred long enough. Under SECURE 2.0, the starting age depends on when you were born:

Birth year	RMDs begin at age	First RMD due
1951 to 1959	73	April 1 of the year after you turn 73
1960 or later	75	April 1 of the year after you turn 75

Every year after the first, the deadline is December 31. The first-year grace period comes with a catch. If you wait until April 1, you’ll take two distributions in that one calendar year, which can push you into a higher bracket.

How the Amount Is Figured

Take your account balance on December 31 of last year and divide it by a life-expectancy factor from the IRS Uniform Lifetime Table. The factor is 26.5 at age 73 and 24.6 at age 75, and it shrinks as you get older, so the percentage you withdraw rises over time.

A few rules decide where the money must come from:

• Traditional IRAs. Calculate the RMD for each IRA, add them up, and take the total from any one of them or a mix.
• 401(k)s and 403(b)s. Each plan stands alone. You must take each plan’s RMD from that plan.
• Roth accounts. Roth IRAs have no RMDs during your life. Since 2024, Roth balances inside a 401(k) don’t either.
• Still working. If you’re still employed and don’t own 5% or more of the company, your current employer’s plan may let you wait until you retire. That doesn’t extend to IRAs or old plans from past employers.

What a Missed RMD Costs

The penalty is 25% of the amount you should have taken and didn’t. If you fix it within a limited correction window, it drops to 10%. You report it on IRS Form 5329 and request the IRS to waive the penalty if you had a reasonable cause. A custodian’s error or an illness can qualify.

The better fix is to avoid it. Taking the RMD in October or November leaves room to correct a miscalculation before the year closes.

The Charitable Move Many Retirees Miss

If you give to charity anyway, a qualified charitable distribution (QCD) may be the most tax-efficient way to do it. Once you’re 70½ or older, you can send money directly from your IRA to a qualified charity. Here’s what makes it work:

• It counts toward your RMD. A QCD can satisfy some or all of the year’s requirement.
• It stays out of your taxable income. You don’t need to itemize, and the lower income can help with things like Medicare premium surcharges.
• The limit for 2026 is $111,000 per person. Married couples can each use their own limit from their own IRAs.

The details matter. The check must be paid directly from the IRA to the charity, which means you don’t withdraw it first. The gift generally can’t go to a donor-advised fund or private foundation. It must come from an IRA, not a 401(k), so you may need to roll a workplace plan into an IRA first. And since it takes time for the custodian to cut a check and the charity to cash it, you’ll want to start well before December 31.

A Simplified Illustration

Take a Southlake retiree who’s 75 with $1,000,000 in a traditional IRA at the end of last year. The RMD is about $40,650 ($1,000,000 divided by 24.6). She normally gives $20,000 a year to her church and local charities.

• Without a QCD. She takes the full $40,650, pays tax on it, then writes the $20,000 in checks from her bank account. If she doesn’t itemize, the gifts don’t reduce her tax.
• With a QCD. She sends $20,000 directly from the IRA to the charities and takes the remaining $20,650 as a regular distribution. She still satisfies the full RMD, but only $20,650 shows up as income.

At a 24% federal bracket, that’s about $4,800 in federal tax she doesn’t owe. Because Texas has no state income tax, the federal savings are the whole story here. (PLEASE NOTE: This example is hypothetical and for illustrative purposes only; it assumes a 24% federal bracket, a year-end balance of exactly $1,000,000, and that she doesn’t itemize. Actual results depend on your income, filing status, other deductions, and the Uniform Lifetime Table factor for your age. Investments can and do lose value.)

Key Considerations and Risks

• Timing is the most common failure. Custodians get busy in December, and a QCD check that isn’t cashed by December 31 doesn’t count.
• A QCD can’t be undone. Once the money goes to the charity, it can’t be counted as a regular withdrawal later.
• Tax withholding is separate. Taking an RMD early in the year can mean you have to make up the tax later, so check your withholding or estimated payments.
• Rules change. Ages, limits, and penalties have all changed in recent years, and the amounts adjust for inflation.
• Mills Wealth Advisors is not a tax or legal advisor. Your CPA can confirm how these rules apply to your return.

Where It Fits in a Wealth Strategy

An RMD is a taxable event, but it’s also a chance to decide what you want that money to do. A short checklist for the next few weeks:

• Confirm your 2026 RMD for each account, using last year’s December 31 balance.
• Check whether you’ve taken any of it already, including automatic withdrawals.
• If you donate to charity, ask your advisor how to start a QCD and how long it takes.
• If you turned 73 or 75 this year, decide whether to take your first RMD now or wait until April.

The Bottom Line

The RMD amount is set by the IRS, but how you take it is still your decision. If you’re already giving to charity, sending that money straight from your IRA costs nothing extra and can lower your taxable income, if you start in time.

Disclosure: This material is provided for informational and educational purposes only and does not constitute tax, legal, or personalized investment advice. Mills Wealth Advisors is not a tax or legal advisor. Required minimum distribution ages, qualified charitable distribution limits, penalties, and deadlines are set by federal law and IRS guidance, change over time, and depend on individual circumstances; figures cited reflect published amounts as of October 2026 and should be confirmed with your tax advisor and account custodian before you act. Investing involves risk, including the possible loss of principal. Past performance is not a guarantee of future results.