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Ages 66–75Stage 10 of 11
Retired
Enjoy the Harvest
Execute tax-efficient drawdowns, maximize travel rewards, manage RMDs, and begin charitable giving.
The Distribution Phase
Required Minimum Distributions (RMDs)
Starting at age 73, you must withdraw a minimum amount from traditional IRAs and 401(k)s. Failure to take RMDs results in a 25% penalty on the amount not withdrawn.
Tax-Efficient Drawdown
Withdraw from taxable accounts first, then tax-deferred, then Roth (tax-free). Consider Roth conversions in low-income years between retirement and RMD age to reduce future tax burden.
Charitable Giving Strategies
Qualified Charitable Distributions (QCDs) let you donate directly from your IRA to charity, satisfying RMDs without increasing taxable income. Donor-Advised Funds (DAFs) offer flexible giving.
Travel Rewards Redemption
Cash in decades of accumulated points and miles for bucket-list trips while health permits. Business class flights and luxury hotels become affordable through strategic point redemption.
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