Required Minimum Distribution (RMD) FAQs

Last Updated: July 2026

If there's one thing you don't want to discover halfway through a transition, it's that a client was expecting money next week.

Required Minimum Distributions don't stop because an advisor changes firms.

Retirement income doesn't pause because paperwork is moving between custodians.

Clients still need their distributions. Bills still show up. Life keeps happening.

That's why RMD planning deserves far more attention than it usually gets.

Can an advisor transition interrupt an RMD?

It can.

Not because anyone intended it to.

But transitions involve account transfers, paperwork, new account setups, and changes to standing instructions. If nobody is watching the distribution schedule, things can easily fall through the cracks.

The good news?

Most of these problems are preventable with good planning.

When should we review clients receiving RMDs?

As early as possible.

Not after paperwork is submitted. Not after assets arrive. Not after the client calls asking where the deposit went.

RMD households should be identified during transition planning so advisors understand:

Who receives distributions
How often they occur
Where the money is sent
Whether any changes will be required

Future-you will be very grateful.

Should clients be told their distributions could be affected?

Absolutely.

That doesn't mean alarming them.

It means preparing them.

A simple conversation about timing, expectations, and what to watch for builds confidence long before questions arise.

Clients don't like surprises. Especially when those surprises involve retirement income.

What's the biggest mistake advisors make with RMDs?

Assuming someone else is tracking them.

Maybe the client remembers. Maybe operations is watching. Maybe the custodian has it covered. Maybe...

"Maybe" is not an operational strategy.

Someone should own the responsibility. Everyone should know who that someone is.

Can automatic distributions transfer to the new custodian automatically?

Don't assume they will.

Standing instructions often need to be reviewed, verified, and in many cases re-established after a transition.

Every custodian has its own operational requirements.

Verification beats assumption every single time.

What are clients actually worried about?

They're usually not asking about RMD regulations.

They're asking:

Will my money arrive?
Do I need to do anything?
Is my monthly income changing?
Did something get missed?

Those are confidence questions disguised as operational questions.

Should RMD clients receive extra communication?

In many cases, yes.

Clients depending on retirement income often have different concerns than accumulation clients.

A little proactive communication goes a remarkably long way.

Nobody has ever complained because their advisor kept them too informed during a transition.

What if an RMD is scheduled during the transition?

That's exactly why planning matters.

The timing of distributions should be considered as part of the overall transition timeline.

Every situation is different, but identifying potential timing conflicts early gives the team far more options than discovering them at the last minute.

How do we know which clients need special attention?

Look beyond account balances.

Identify households that rely on recurring distributions to support everyday living expenses.

For those clients, even a short delay can feel much bigger than it appears operationally.

To operations, it may be one transfer.

To the client, it's this month's grocery money.

Does every RMD issue become a client problem?

No.

The best transitions quietly solve problems before clients ever know they existed.

That's the goal.

Operational excellence is often invisible.

And that's a compliment.

Should advisors treat RMD planning as a compliance task?

It's certainly an important regulatory consideration.

It's also a client experience issue.

Clients don't separate compliance from service.

They simply expect their advisor to help make sure important things happen when they're supposed to happen.

What's the best piece of advice for handling RMDs during a transition?

Pretend every client receiving retirement income is your parent.

Would you be comfortable saying,

"I think everything will probably work itself out."

Of course not.

You'd verify everything. Double-check timelines. Confirm instructions. Follow up.

That's exactly the mindset great transition teams bring to every RMD household.

Key Takeaway

Required Minimum Distributions aren't just another operational checklist item.

For many clients, they're part of everyday life.

The most successful advisor transitions recognize that retirement income deserves special attention. By identifying RMD households early, communicating proactively, verifying standing instructions, and monitoring distributions throughout the transition, advisors protect more than a process.

They protect peace of mind.

Important: This article is intended for educational purposes only and is not tax, legal, or regulatory advice. Advisors and clients should consult qualified tax and legal professionals regarding their specific circumstances.