AAPL TSLA AMZN META AMD NVDA PEP COST ADBE GOOG AMGN HON INTC INTU NFLX ADP SBUX MRNA AAPL TSLA AMZN META AMD NVDA PEP COST ADBE GOOG AMGN HON INTC INTU NFLX ADP SBUX MRNA AAPL TSLA AMZN META AMD NVDA PEP COST ADBE GOOG AMGN HON INTC INTU NFLX ADP SBUX MRNA Markets Are You Making These 3 Common Required Minimum Distribution (RMD) Mistakes? March 15, 2026 — 05:45 am EDT Written by Keith Speights for The Motley Fool -> Key Points Delaying your first RMD until early in the year after you reach the required age may not always be a great idea. It's important to understand the limits of the IRS' "still working" RMD exception. If you want to donate to charity, take advantage of Qualified Charitable Distributions (QCDs). The $23,760 Social Security bonus most retirees completely overlook › Many Americans prioritize socking away money for retirement while they're working. After they retire, though, the focus shifts to using the cash from their tax-advantaged accounts most effectively. That's where required minimum distributions (RMDs) come into play. RMDs are mandatory annual withdrawals from tax-deferred retirement accounts that kick in once you reach the required age (which depends on when you were born). Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue » Unfortunately, the rules surrounding RMDs aren't always easy to understand. Are you making these three common RMD mistakes? Image source: Getty Images. 1. Double trouble You don't have to take your first RMD in the year you reach the required age. The IRS allows you to hold off until April 1 of the next year. For example, suppose you were born in 1953. You'll reach your required age for RMDs of 73 in 2026. You can take your first RMD at any time through April 1, 2027. However, there's a potential issue if you wait until early next 2027. You will have to take the delayed RMD for 2026 and the regular RMD for 2027 in the same year. This could push you into a higher tax bracket. 2. A limited exception Some people enjoy their jobs so much that they continue working well past the age at which most Americans retire. If you're still employed after your required age for taking RMDs, you may be able to delay RMDs from your current employer's 401(k) or 403(b) plan . The mistake to avoid, though, is understanding that this is a limited exception. The IRS won't allow you to delay RMDs from traditional IRAs or 401(k)s from your previous employers. One other thing to know: If you own 5% or more of the company you currently work for, you can't delay RMDs from the company's 401(k) plan. 3. A charitable error Suppose you want to give some money to a charitable organization. You could take your RMD, deposit it into your bank account, and then write a check to the charity. But you shouldn't take this approach. Why? There's a smarter way to donate. What you can do instead is use a Qualified Charitable Distribution (QCD). It allows you to transfer up to $111,000 directly from an IRA to a charitable organization. The amount of your contribution counts toward your RMD. Even better, though, the amount isn't included in your Adjusted Gross Income (AGI). As a result, your taxable income is lower than it would have been if you had taken the RMD and then donated to charity. The $23,760 Social Security bonus most retirees completely overlook If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. One easy trick could pay you as much as $23,760 more ... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these strategies. View the "Social Security secrets" » The Motley Fool has a disclosure policy . The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Tags Markets The Motley Fool Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off. Visit Fool.com for more market news -> More articles by this source -> More Related Articles This data feed is not available at this time. Data is currently not availab