Why the Years Before 73 Matter so Much for Retirees

Smart tax moves before RMDs begin can help reduce future taxes and let you keep more of your retirement savings.

The years before required minimum distributions may be your best chance to cut retirement taxes. pikselstock/shutterstock

People tend to view certain years as milestones—like 21 or 50. But people rarely discuss the significance of 73. However, that age is especially important for retirees and those nearing retirement.

This is because 73 is the year that required minimum distributions (RMDs) begin for those born between 1951 and 1959. It’s 75 for those born in 1960 or later.

In any case, RMDs matter.

RMDs are certain amounts of funds that you must withdraw from pre-tax accounts like traditional IRAs and 401(k)s. It doesn’t matter if you need the money or not. And you’ll face a tax penalty if you don’t take your applicable RMD.

You should also note that RMDs are calculated based partially on the balance of your account. And if you’ve been saving for decades, you may have a hefty nest egg by now. So if these mandatory distributions are large enough, they could bump you to a higher tax bracket. As a result, they could increase the taxes on your Social Security benefits and even your Medicare Part B and Part D premiums.

But there are a few tax-savvy moves you can make during the years leading up to age 73 or 75. So let’s dive into these.

Roth Conversions

Some financial advisors call the time between early retirement and before you begin taking Social Security checks and before RMDs begin the sweet spot or gap years. This is because at this point when you’re not collecting a regular paycheck nor Social Security benefits, you’re probably in a low tax bracket. And you could theoretically control your income flow and tax bracket placement.

That could open the door to a strategic Roth conversion. Roth IRAs and Roth 401(k)s allow for tax-free withdrawals in retirement, and they don’t involve RMDs.

So what exactly is a Roth conversion? A Roth conversion is the process of transferring funds from a pre-tax account such as a traditional IRA into a Roth account such as a Roth IRA. However, you need to pay taxes on the converted amount. But here too, you have control. You can convert as much or as little as you want. And if you’re in a low tax bracket, the impact could be minimal.

It’s a strategy that needs to be carried out the right way to get the most out of it. So it’s best to work with a qualified financial adviser when doing a Roth conversion.

Shrink Your Pre-Tax Accounts

A Roth conversion is one way to reduce the balance of your traditional IRA and thereby future RMDs.

But you can start making penalty-free withdrawals beginning at age 59.5. So this may be a good age to start looking at your financial situation and see how systematic withdrawals from pre-tax accounts may work for you. For instance, you could withdraw just enough to stay within a favorable tax bracket.

Qualified Charitable Distributions

If you’re charitably inclined, age 70.5 is a good year to support your most cherished causes and make smart financial moves at the same time.

If you’re at least 70.5 years old in 2026, you can donate up to $111,000 to qualified charities through a qualified charitable distribution (QCD). This distribution won’t count as taxable income and it can satisfy your RMD.

Let’s say your RMD for the year is $30,000. You can make a $30,000 QCD and meet the requirement without raising your adjusted gross income (AGI).

Keeping your AGI low can help you avoid burdens like taxation on Social Security and Medicare, as well as eligibility for certain credits.

But to do this the right way, you should execute your QCD for the year before taking any other IRA distributions.

Here’s an example of why that matters.

Suppose you have an RMD for the year of $20,000. In March, you withdraw $5,000 from your IRA to cover a medical emergency. In October, you make a $20,000 QCD to an IRS-qualified charity. Because you already withdrew $5,000, only $15,000 ($20,000 - $5,000) counts toward your RMD.

The Bottom Line

Age 73 doesn’t have to be a daunting time of life because of RMDs. There are plenty of tax-savvy moves you can make in the years leading up to that milestone. These include Roth conversions, systematic withdrawals from your pre-tax account any time after age 59.5, and making QCDs.

But these strategies can be complex and may backfire if not done correctly. So it’s important to discuss these tactics with a qualified financial and tax adviser.

The Epoch Times copyright © 2026. The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.