When you reach your 70s, the IRS forces you to start taking money out of your tax-deferred accounts (IRAs, 401(k)s, etc.).

These are called Required Minimum Distributions (RMDs).

It doesn’t matter if you don’t need the income - every dollar your forced to withdraw is taxed as ordinary income.

So even if you’ve invested wisely your whole life, RMDs can push you into the highest tax brackets just when you were hoping to slow down and enjoy life.

I just spoke with someone yesterday who has over $200,000 a year in RMDs - and is losing far more to taxes than they’d like.

Some common strategies get thrown around - things like QCDs (Qualified Charitable Distributions) or Roth conversions in early retirement.

Those are great in theory… but not so useful if:

• You’re not charitably inclined (or already funded a DAF/foundation)
• You’ve already passed the early retirement window

Here’s what actually works:

Build a portfolio that passes ordinary deductions through to you.

If you can realize a $500,000 deduction each year, that covers your $200,000 RMD and frees up another $300,000 that can be converted into a Roth tax-free.

That’s how we help clients turn an RMD problem into a long-term wealth compounding advantage.