Editor’s Note ：
Taxes shape more than returns—they affect retirement, assets, and legacy.
Cultural Express presents Retirement Tax Navigator, featuring Wealth Enhancement®, SVP Mindy Ying and real-world retirement tax strategies.
If your pension and Social Security cover your expenses, why tap retirement savings?
Many would rather let the money grow—and leave more to their children.
But with tax-deferred accounts, withdrawals depend on age and account rules, not just your need for cash.
Mindy Ying, Senior Vice President at Wealth Enhancement®, explains that many tax-deferred accounts require annual minimum withdrawals (RMD) once you reach the applicable age—even if you don’t need the money.
Your birth year and account type determine when they begin.
Retirement planning means calculating both what you need to spend and what you must withdraw, she notes.
Money you don’t need can still bring taxes you owe.
Taxes Deferred | Withdrawals Required
Tax-deferred accounts such as traditional IRA let savings grow before taxes come due, says Mindy Ying.
But deferral isn’t exemption: at the required age, annual minimum withdrawals generally begin, and previously untaxed funds become taxable.
Traditional IRA owners turning 73 in 2026 generally must begin RMD that year. Those born in 1960 or later start at 75 under current law.
The rules follow your age and account—not your need for cash.
Working doesn’t delay traditional IRA RMD, though eligible participants may postpone withdrawals from a current employer’s 401(k) if the plan allows.
Original Roth IRA owners have no lifetime RMD.
Check your birth year, account type and starting deadline before scheduling withdrawals.
Spending Eases | Withdrawals Rise
Spending may fall while required withdrawals rise, Ying notes.
Travel and entertainment expenses can shrink with age, while account growth and higher withdrawal percentages push RMD upward.
RMD generally equal the prior year-end balance divided by an IRS age-based factor. As you age, the required withdrawal percentage generally rises.
This factor calculates the minimum withdrawal—it isn’t a tax rate.
For someone turning 73 with a $1 million traditional IRA at the previous year-end, the IRS Uniform Lifetime Table factor is 26.5: $1,000,000 ÷ 26.5 = approximately $37,736.
That’s roughly 3.77% of the balance—the required withdrawal, not the tax bill.
RMD are recalculated annually using the updated balance and factor.
If all funds were previously untaxed, the full $37,736 generally counts as ordinary income, taxed at regular income tax rates.
Spending $20,000 and banking the remaining $17,736 doesn’t make the remainder tax-free.
You’re taxed on the withdrawal, whether you spend it or not.
RMD may raise taxable income, making up to 85% of Social Security benefits taxable. That’s the taxable share—not an 85% tax rate.
Higher income may also increase Medicare Part B and Part D premiums, typically two years later.
First Delayed | Income Combined
Your first RMD can generally wait until April 1 of the year after you reach the required age.
Your second is still due on December 31. Delaying doesn’t erase a year’s withdrawal.
Someone turning 73 in 2026 who postpones the first RMD until early 2027 must also take the 2027 RMD by year-end.
Both enter 2027 income, potentially pushing some income into a higher tax bracket.
Taking the first RMD in 2026 spreads the withdrawals across two tax years. Compare both years’ projected income and taxes before assuming later is better.
Missing the deadline or withdrawing too little may trigger a 25% excise tax on the shortfall, reduced to 10% with timely correction and other requirements met.
Reasonable errors may qualify for a waiver.
Your financial institution can help, but meeting the deadline remains your responsibility.
Plan Ahead | Preserve Flexibility
Ying recommends projecting RMDs alongside Social Security, pensions and investment income to see the full tax picture.
Lower-income years early in retirement may favor gradual Roth conversions, reducing future tax-deferred balances.
Converting too much at once, however, can inflate current taxes and Medicare premiums.
Once RMD begin, satisfy the year’s requirement before converting additional funds to Roth; the RMD itself cannot be converted.
A qualified charitable distribution (QCD) from your IRA can satisfy your RMD while supporting a cause—details in the next installment.
Unneeded withdrawals can stay in cash or be reinvested in a taxable account, with future earnings taxed as applicable.
Required withdrawals don’t mean required spending.
Build RMD into your retirement plan early, Ying emphasizes.
The goal is more than meeting a deadline: it’s keeping those dollars working for your life and legacy after taxes. (Part 4 of 6)
* For education only—not personal investment, tax or legal advice. Laws and circumstances vary; consult a qualified professional.
Tax & Finance Glossary
RMD | Required Minimum Distribution
The minimum annual withdrawal generally required from retirement accounts once you reach the applicable age.
It’s a withdrawal minimum—not a tax or cap. Extra withdrawals don’t count toward next year’s RMD.
Traditional IRA | Individual Retirement Account
A personal retirement account with tax-deferred growth.
Contributions may be deductible; withdrawals are generally taxable, except for the proportional return of nondeductible contributions.
Profile ：
Mindy Ying
Senior Vice President and Managing Director at Wealth Enhancement®, was named one of Barron’s Top 100 Women Financial Advisors for 2026.
She advises individuals, business owners, and multigenerational families on investments, retirement, and legacy planning.