Don't Want to Take Your 2026 RMDs? Go Ahead and Skip Them for These Accounts.

Required minimum distributions (RMDs) aren't always a big deal, but if you don't need the extra cash, they can be a major pain point. You're forced to withdraw savings you don't actually need, leaving less money invested to cover your future expenses, and your reward for doing this is a higher tax bill.

Skipping your RMDs triggers an even steeper 25% tax penalty on the amount you should have withdrawn. So that's not a great option either. It's often best to take the necessary RMDs, but you don't have to withdraw funds from all of your retirement accounts.

Image source: Getty Images.

Roth IRAs and 401(k)s are exempt from RMDs. You can leave money in these accounts for as long as you'd like without any tax consequences. You already paid taxes on your contributions when you first invested them, so the IRS doesn't force you to withdraw these dollars on a set schedule.

You also don't have to take withdrawals from your current 401(k) if you're still working and own less than 5% of the company you work for. You'll still have to take RMDs from any old 401(k)s or IRAs, though.

Thanks to a unique IRA rule, you aren't required to take RMDs from every single IRA you own. You must calculate each IRA RMD individually, but you can withdraw that money from a single account if you prefer.

For example, if you have one IRA with a $5,000 RMD and another IRA with a $10,000 RMD, you can withdraw $15,000 from one, $7,500 from each, or any combination you like as long as they total at least $15,000 together.

This rule doesn't apply to 401(k)s, though. You must take individual RMDs from each of your 401(k)s, or else the IRS will charge you a tax penalty.

The Motley Fool has a disclosure policy.