Advisors hear it every year.
“We can delay it.”
Technically, that’s often true.
For many clients, the first Required Minimum Distribution can be delayed until April 1 of the year following the year they reach their Required Beginning Date. But just because a client can delay an RMD doesn’t automatically mean they should.
One of the most common mistakes in retirement income planning is focusing on a rule while ignoring its consequences.
A delayed first RMD doesn’t disappear. It simply moves into the following year.
That means a client who delays their first RMD could find themselves taking two taxable distributions in the same year. If they also have assets in an employer plan subject to RMDs, the number of distributions can grow even larger.
That’s why I encourage advisors to ask a different question.
Instead of asking:
“Can my client delay the RMD?”
Ask:
“What happens if they do?”
Sometimes retirement income drops dramatically once a client leaves the workforce. In those situations, delaying the first distribution may result in lower overall taxation.
Other times, the delay creates a larger tax burden.
The difference isn’t the rule. The difference is the planning.
Groundhogs make predictions.
Advisors run projections.
The most valuable RMD conversation often isn’t about the distribution itself. It’s about understanding how that distribution fits into the client’s broader retirement income picture.
Because the goal isn’t simply getting the RMD right.
The goal is helping the client make the better decision.
Get the IRA Oracle’s RMD Planning Checklist
From RMD timing decisions to QCD and Roth conversion opportunities, this checklist highlights the planning areas advisors review most often.
About the Author: Cathleen Davis‑Whitmore serves as the Chief Compliance and Education Officer at Financial Cloud Works, LLC, where she is widely known as “The IRA Oracle” for her deep expertise in Individual Retirement Accounts (IRAs) and her ability to translate complex IRS rules into clear, actionable guidance for advisors and their clients.
With more than 20 years of experience in the financial industry, Cathleen blends technical mastery with strategic marketing insight, supporting financial advisors, CPAs, and estate planning attorneys with solutions that simplify planning and elevate client conversations.
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