Your 2025 RMD

December 31, 2025 is the deadline for most retirement account owners to take their 2025 required minimum distribution (RMD). 

Most of our clients are scheduled to take their RMD November 1, 2025. 

This is to make sure that if there is an issue, we have ample time before the end of the year to get it solved. 

Another reason is custodians like Schwab get swamped at the end of the year and we don’t want to risk not getting an RMD. 

However, there are other times when you must take your RMD earlier than you planned. 

If you are age 73 or older this year and are doing a Roth conversion*, you must take your 2025 RMD first prior to doing the conversion.

This is because the IRS says the first money out of your IRA is your RMD. 

A conversion is subject to rollover rules and you cannot convert your RMD to a Roth. 

The new final RMD regulations also say if you have multiple IRAs including SEP and Simple, your 2025 RMD must be taken from ALL of them first before doing any rollovers or conversions. 

This is one of the reasons we recommend that all your IRAs be with our office so as not to run afoul of this regulation. 

Another reason for taking your RMD early is if you are planning to do a qualified charitable distribution (QCD). 

The custodian has to send the check directly to the charity and the charity must cash the check before the end of the year.

*Converting an employer plan account or Traditional IRA to a Roth IRA is a taxable event. Increased taxable income from the Roth IRA conversion may have several consequences including but not limited to, a need for additional tax withholding or estimated tax payments, the loss of certain tax deductions and credits, and higher taxes on Social Security benefits and higher Medicare premiums. Be sure to consult with a qualified tax advisor before making any decisions regarding your IRA.