How can retirees save $6,000?

By withdrawing more than the minimum, retirees can reduce the taxable account balance, lowering future RMDs and achieving cumulative tax savings of up to $6,000 annually.

What percentage of retirees take only the minimum?

According to the JPMorgan study, 80% of retirees withdraw only the minimum.

80% of Retirees Miss $6,000 Tax Break by Taking Only Minimum RMD

A new report from JPMorgan Chase finds that 80% of retirees take only the required minimum distribution (RMD) from their retirement accounts, forgoing a potential $6,000 tax break.

July 5, 2026

2 min read

Source: Moneywise

Key Numbers

age rmd starts

tax break amount

$6,000

A recent study by JPMorgan Chase (JPM) reveals that the vast majority of retirees are missing out on thousands of dollars in tax savings due to a conservative withdrawal strategy.

Details

Starting at age 73, retirees are required to take Required Minimum Distributions (RMDs) from their tax-deferred retirement accounts. However, the study found that 80% of retirees withdraw exactly the minimum amount required by the IRS, not a dollar more. This behavior deprives them of a potential tax break of up to $6,000 annually.

Context

The RMD is a mandatory withdrawal amount starting at age 73, calculated based on age and account balance. But withdrawing more than the minimum can reduce the future tax liability by lowering the account balance, thereby decreasing future RMDs and providing cumulative tax advantages.

What This Means for Investors

Financial advisors recommend that retirees reassess their withdrawal strategy, especially if they are in a lower tax bracket currently. Proactive withdrawals can reduce the tax burden on heirs and improve long-term tax planning.

Frequently Asked Questions

The RMD is a mandatory annual withdrawal from tax-deferred retirement accounts that retirees must begin taking at age 73.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.