Seven Weeks to December 31

Required distributions, the charitable move that never touches your tax return, and a Medicare deadline that comes first.

By Nicolas J. McLeod | Published: November 13, 2026

With just seven weeks remaining in the calendar year, year-end wealth planning moves from strategic discussion to operational execution. December 31 is an unforgiving tax cutoff for high-net-worth investors and retirees—and custodians routinely experience processing backlogs during the final two weeks of December.

To ensure smooth execution, here is what you need to know about your Required Minimum Distributions (RMDs), high-impact charitable strategies, and early December health coverage deadlines.

Required Minimum Distributions: Rules & Penalties

If you are 73 or older, the IRS requires you to take a minimum distribution from your traditional IRAs and 401(k) accounts by December 31.

Note: Under current law, the starting age for RMDs moves to age 75 for individuals born in 1960 or later.

Key RMD Parameters & Timelines

ParameterDetails & ImpactFirst RMD OptionIf this is your initial RMD year, you may delay your first distribution until April 1, 2027. However, doing so forces you to take two distributions in 2027, potentially pushing you into a higher tax bracket.Standard Penalty25% penalty on any required amount not distributed by the deadline.Corrected PenaltyReduced to 10% if the error is identified and corrected within two years.Recommended TargetWe advise clients to complete all distribution requests by the first week of December to avoid custodian delays.

The $111,000 Charitable Move Most People Miss

The strategic move sitting directly alongside your RMD is the Qualified Charitable Distribution (QCD). If you are 70½ or older, the IRS allows you to transfer up to $111,000 directly from your traditional IRA to qualified charities in 2026.

Why a QCD Is Superior to Standard Giving:

• Excluded from Income: Unlike a standard IRA withdrawal that gets taxed as income and then itemized, a QCD goes directly to charity and never appears on your tax return as income.
• Fulfills RMD Obligations: The amount transferred counts directly toward your required distribution for the year.
• Protects Medicare & Social Security: By keeping your Adjusted Gross Income (AGI) lower, you protect against higher Medicare Part B & D surcharges (IRMAA) and reduce the taxable portion of your Social Security benefits.

The Deadline That Comes First: December 7

Before year-end tax deadlines arrive, Medicare Open Enrollment closes on December 7.

If your plan’s covered drug list (formulary) or provider networks changed for 2027, December 7 is the final date to make adjustments for next year's coverage.

Key Takeaway: Custodians slow down significantly after mid-December. Getting your distributions and healthcare choices locked in before December 7 prevents costly administrative errors.

Need Assistance Completing Your Year-End Distributions?

Our team is actively coordinating year-end processing for all client portfolios. Contact our office today to confirm your 2026 distribution schedules.