Oct. 21, 2026

How Do Required Minimum Distributions (RMDs) Work?

Show Notes

Required minimum distributions often sound straightforward until timing, taxes, and deadlines begin affecting the decisions you make.

Many retirees discover there is more flexibility than they expected, but there are also situations where delaying a distribution can create unintended tax consequences.

In this YSR FAQ episode, Dennis O’Keefe explains how required minimum distributions are calculated, when they begin, and why understanding the rules before your first distribution matters. He discusses the option to delay your initial RMD, why that choice doesn’t always produce a better outcome, how taking two distributions in one year can increase taxable income, and what retirees should consider before deciding when to withdraw their money.

Key takeaways:

How required minimum distributions are calculated using your prior year account balance
Why your first RMD may be delayed, but rarely produces the best tax outcome
How taking two distributions in one year can increase taxable income
When brokerage firms notify retirees about annual distribution requirements
Why planning ahead reduces unnecessary tax surprises during retirement
And more!

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