Retirement Retirement Planning

This Retirement Account Lets You Avoid Required Withdrawals - With One Catch

How a Roth IRA sidesteps mandatory withdrawals in retirement.

By Tobi Amure, CFEI® , Edited by Lisa Dammeyer

Updated April 8, 2026

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Required minimum distributions, or RMDs, surprise many retirees who assume they control their own withdrawals. Instead, the government sets a schedule and forces money out of traditional IRAs and most 401(k)s, according to IRS guidance. Those withdrawals create taxable income, even when you do not actually need the extra cash.

There is one major exception that offers much more flexibility in retirement. With this account, you can leave money invested and then withdraw it only when you really need it. Learning how the option functions would allow you to save more and avoid wasting money in retirement on unnecessary taxes.

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Which retirement account lets you avoid RMDs?

A Roth IRA is the only significant retirement account that does not have to be withdrawn during the lifetime of the original owner. Conversely, most employer plans, including 401(k)s and traditional IRAs, according to the current law, must incur RMDs beginning the year the owner reaches age 73. These are mandatory withdrawals, pegged to the end-of-year balance of previous years and a life expectancy factor.

With a Roth IRA, you can leave the money there forever, but the heirs of the account are subject to their own RMD requirements.

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The catch

Roth IRAs allow flexibility in the future, but you can only contribute to the account with after-tax funds, and, therefore, you do not deduct a tax credit during the current year. However, many other accounts, like traditional IRAs and certain 401(k) contributions, decrease your taxable income during the year that you make them.

Your qualified withdrawals from a Roth IRA in retirement are generally tax-free. According to the IRS, the tax-free distribution of a qualified Roth IRA is mostly tax-exempt when you satisfy the age and holding period requirements. That is, your contributions plus any growth over time, and that can be effective after many years of investment.

One other drawback of a Roth IRA

There is one more trap that plagues higher incomes. You might not be eligible to make a direct contribution to a Roth IRA after you reach a certain income level.

However, there are some workarounds for this, like the backdoor Roth IRA. Some higher earners depend on such conversion tactics to still reap the rewards of a Roth IRA.

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Why it may be helpful for retirees to avoid RMDs

Avoiding RMDs gives you options that can make a big difference in how long your money lasts and how much you actually pay in taxes. Let's explore some reasons why it may be helpful for retirees to avoid RMDs.

More control over yearly taxes

When you are not forced to take taxable withdrawals, you choose which accounts to tap. That choice lets you shape your taxable income instead of accepting whatever an RMD formula demands.

You can afford not to make Roth withdrawals in years when you already have a high income and you do not want to pile more taxable dollars on top of that.

Protecting benefits and managing costs

Avoiding RMDs can often keep your income in a lower tax bracket. Higher income can cause more of your Social Security benefits to be taxed and may push you into higher Medicare premium tiers. When you avoid those extra taxes and surcharges, you keep more of each dollar you receive.

Skipping forced withdrawals can put you in a better position to remain below those key thresholds. The money you keep instead of sending to taxes or higher premiums can create more room in your budget for travel, hobbies, or supporting your family.

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Keeping money growing

If you do not need the cash, forced withdrawals can feel wasteful. Without RMDs, you are able to leave your Roth IRA invested and continue to grow over a long period of time. That continuous growth may be particularly valuable when you are looking at a long retirement, or you simply fear the costs of late age.

You can still tap the Roth when you really need to. But you are making that call based on your plan — not an IRS schedule. Over time, leaving more in place may help your nest egg better keep pace with inflation and healthcare costs.

Supporting heirs and charity

A Roth IRA can also support long-term goals beyond your own spending. Because you do not face RMDs during your lifetime, you can let that account grow for your heirs or with charities in mind. That often results in a larger, more tax-friendly balance to pass on.

Heirs do have their own withdrawal rules and deadlines on inherited Roth IRAs. Despite this, the withdrawals are normally tax-free when the account satisfies the criteria. That is why a Roth IRA can be an effective means of helping children, grandchildren, or causes of choice without leaving them a hefty tax bill.

Bottom line

The benefit of a Roth IRA is that you can avoid RMDs in your lifetime and have greater control over withdrawals. In exchange, you contribute after‑tax money and may face income limits or need to use conversions instead of direct contributions.

A Roth IRA will assist you in tax management, safeguarding the greater part of your benefits, and assist in your legacy plans. It also gives you another lever to pull as tax laws and your income change over time.

Revisiting your Roth strategy with a tax or financial professional every few years can be worthwhile, as it helps you stay on track for retirement.

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