On February 27, 2026, at 4:48 PM ET, if you’re putting money aside for retirement through a traditional IRA or a 401(k), you might be aware that there’s a limit to how long you can hold onto those funds. Once you hit 73, or a later age based on your birth year, it’s time to start withdrawing your Required Minimum Distributions (RMD).
You have the option to delay your first RMD until April 1 of the year after you turn 73, with all subsequent RMDs due by December 31. Beyond that, you have some flexibility regarding when to take your RMDs throughout the year.
These distributions can be taken monthly, quarterly, or in one lump sum. Whether you choose January 2, February 23, or June 26 really doesn’t matter to the IRS. What’s important is to meet the yearly deadline; otherwise, you could face a 25% penalty for not taking your RMD.
You might be asking yourself if taking your 2026 RMD in February is wise. Well, there are compelling reasons to consider acting sooner rather than later, but there are also some arguments for delaying it.
Reasons to Consider Acting Now
One advantage of withdrawing your RMD early in the year is that it helps you check off an important task from your list. By doing it in February, you reduce the risk of forgetting and facing penalties later.
Your decision can also reflect how your portfolio is doing. If it’s performing well, it might be smart to take your RMDs now rather than risk market fluctuations later on.
If you postponed your first RMD last year, keep in mind you have about a month left to make that withdrawal. And let’s face it, tax season is just around the corner. By taking an RMD now, you can concentrate on filing your taxes without stressing about that April 1 deadline.
Benefits of Waiting
While there are upsides to taking your RMDs right away, sitting on the funds for a bit can also be advantageous. Money tied up in a 401(k) or IRA may experience better tax-advantaged growth. Plus, delaying gives you more room to maneuver.
February might not be the easiest time to pin down your annual income. By year-end, if you find yourself in a higher tax bracket, you might plan some qualified charitable contributions to offset taxes on RMDs.
There’s no hard and fast rule about when to take your RMDs. If February is on your mind but you want to hold off, that’s completely reasonable. Just make sure to set a reminder for later in the year so you won’t forget about it.
