Strategies to De-risk the RMD Bomb

You cannot easily avoid RMDs, but you can neutralize their impact:

Roth Conversions

The single most effective strategy is to systematically convert pre-tax balances to a Roth IRA during the low-income window between retirement and age 73. Roth IRAs do not have RMDs during your lifetime, letting your assets compound tax-free indefinitely.

Qualified Charitable Distributions (QCDs)

If you are charitably inclined, the QCD is a massive tax loophole. Once you reach age 70½, IRC §408(d)(8), “Distributions for charitable purposes” lets you transfer up to $111,000 per person in 2026 (inflation-indexed) directly from a traditional IRA to a qualified charity. The QCD counts toward your RMD but is excluded from your Adjusted Gross Income (AGI)—meaning it will not trigger IRMAA or NIIT thresholds.

Qualified Longevity Annuity Contracts (QLACs)

Under Treas. Reg. §1.401(a)(9)-6, “Required minimum distributions”, you can allocate up to $210,000 (2026, indexed) from your traditional accounts to purchase a QLAC. The QLAC defers the start of distributions up to age 85, removing that allocated capital from your RMD calculation during your 70s. section “Annuities” covers the pricing and the illiquidity you are accepting.

Roth 401(k) balances no longer force distributions

SECURE 2.0 §325 eliminated lifetime RMDs from designated Roth accounts inside employer plans effective 2024, so a Roth 401(k) now behaves like a Roth IRA on this dimension. Rolling it to a Roth IRA is still usually right — for the investment menu and to consolidate the five-year clocks — but it is no longer required to escape RMDs.