For many older adults, required minimum distributions (RMDs) are simply part of retirement—they’ve been spending from their retirement accounts since they stopped working.

For higher-income retirees, however, RMDs can be frustrating. While traditional tax-deferred accounts provided years of tax advantages, RMDs are taxed as ordinary income and can also increase taxes on Social Security benefits and Medicare premiums.

The good news is that the RMD starting age has gradually increased. It remained at 70½ through 2019 before rising to 72 under the SECURE Act, then to 73 in 2023 under SECURE 2.0. Beginning in 2033, the starting age will increase again to 75.

Here’s what RMD-subject investors should know for 2026.

1. RMDs Will Be High Again This Year

If you’re taking an RMD in 2026, the amount was determined by your Dec. 31, 2025 account balance. Because 2025 was another strong year for stocks, bonds, and cash, many retirees can expect higher RMDs. The percentage you must withdraw also increases with age, so annual RMDs generally continue to grow unless portfolio values decline.

2. But They Won’t Cause You to Overspend

Many retirees worry RMDs could drain their savings too quickly. Fortunately, required withdrawals begin at a relatively modest 3.77% at age 73 and increase gradually over time. Research suggests older retirees can safely spend a larger percentage of their portfolios as life expectancy shortens.

It’s also worth noting that IRS life expectancy tables used to calculate RMDs are intentionally conservative, assuming the account could support someone 10 years younger. While higher withdrawals may increase taxes, they’re unlikely to cause retirees to run out of money prematurely.

3. You Can Always Reinvest RMDs

Although you must withdraw your RMD and pay any taxes due, you aren’t required to spend it. If you have earned income, you may be able to contribute some or all of it back into an IRA, subject to annual contribution limits. Otherwise, reinvesting in a taxable brokerage account can provide flexibility while potentially benefiting heirs through a step-up in cost basis.

4. You Can Use Your RMDs to Improve Your Portfolio

Rather than withdrawing proportionally from every investment, consider using RMDs to rebalance your portfolio. Selling appreciated positions or reducing concentrated holdings can help better align your investments with your long-term goals.

With stocks still at relatively elevated valuations, many retirees may find it makes sense to use RMDs to trim equity exposure while increasing allocations to bonds or cash.

5. You Can Employ Strategies to Reduce RMDs

Several strategies can help minimize future RMDs or reduce the taxes they generate.

If you’re still working, contributing to Roth retirement accounts may reduce future RMDs, though traditional contributions may still make sense depending on your tax bracket.

If you’ve retired but haven’t started RMDs, lower-income years can be an ideal time for Roth conversions or larger withdrawals from traditional accounts before RMDs begin.

If you’re already taking RMDs, a qualified charitable distribution (QCD) allows individuals age 70½ or older to donate up to $111,000 directly from an IRA to a qualified charity in 2026. QCDs can satisfy RMD requirements, reduce taxable income, lower future RMDs, and support causes you care about—all while helping improve your portfolio strategy.

Still have questions about RMDs and your retirement portfolio? Reach out to a Wealth Advisor today!

This article was adapted from original content published on Morningstar.com.