Reaching the age of 73 is a major milestone — not just in life, but in retirement planning. It’s the age when required minimum distributions (RMDs) officially begin for most, meaning you must start withdrawing a portion of your savings from tax-deferred retirement accounts like IRAs and 401(k)s each year.

These withdrawals count as taxable income and can lead to unexpectedly high tax bills. However, with the right planning and strategic moves, you can potentially reduce the tax burden and hold on to more of your retirement savings.

If you’re looking to make the most of your retirement funds, working with a fiduciary financial advisor may be a great place to start. A recent Northwestern Mutual study found that while 66% of Americans say their financial planning needs improvement, only 37% actually work with an advisor.

In fact, data from SmartAsset shows that professional advice could add between 36% to 212% more value to an investor’s portfolio over their lifetime, depending on personal factors.

Here are five practical strategies you can consider to reduce RMD-related taxes once you hit age 73.

1. Convert Traditional IRA Funds to a Roth IRA Roth IRAs aren’t subject to RMDs, making them a powerful tool in tax-efficient retirement planning. By converting some of your traditional IRA savings to a Roth account over time, you can reduce the overall balance of accounts subject to mandatory withdrawals.

For instance, if your income is lower in a particular year, you could consider converting part of your IRA then — reducing the overall tax hit. Just note: Roth conversions are taxed in the year they’re done, so it’s important to understand how this impacts your income. A financial advisor can guide you through this process.

2. Donate Through a Qualified Charitable Distribution (QCD) Want to give back and reduce your taxable income at the same time? QCDs allow you to transfer up to $100,000 per year directly from your IRA to a registered charity.

If, for example, you’re 74 and financially comfortable, donating your RMD through a QCD means that amount won’t be counted as taxable income. That could help lower your overall tax bill — and even keep your Medicare premiums down, since your adjusted gross income (AGI) stays lower.

3. Withdraw Strategically to Reduce Future RMDs Taking proactive withdrawals from your tax-deferred accounts — even beyond your required minimum — can help manage your future RMD obligations.

This strategy involves withdrawing just enough to stay within a lower tax bracket. By doing so, you can reduce the account balance that future RMDs are based on, possibly preventing larger tax bills in years to come.

A 74-year-old retiree, for example, might choose to withdraw slightly more each year and reinvest in a taxable brokerage account. This keeps more control in their hands rather than being forced into higher withdrawals later.

4. Rebalance Investments to Manage Account Growth How your funds are invested also affects your future RMDs. Investments with higher growth potential increase the size of your tax-deferred accounts, which means higher RMDs down the road.

You might consider placing high-growth investments in a Roth IRA and allocating lower-growth or income-focused assets — like bonds — in your traditional IRA. This shift can help reduce the expansion of accounts that are subject to RMDs.

Before making any changes, ensure that your overall investment strategy aligns with your risk tolerance and long-term goals.

5. Use RMDs for Eligible Expenses and Deductions Instead of letting RMDs sit in cash or be spent randomly, consider using them on qualified expenses that may offer tax deductions. This includes things like long-term care insurance premiums, major medical bills, or home modifications for aging in place.

If these expenses surpass a certain percentage of your AGI, you may be eligible for tax deductions — further easing the tax impact of your RMDs.

Final Thoughts RMDs may be unavoidable after 73, but the taxes they bring don’t have to catch you off guard. With proper planning and the right mix of strategies — from Roth conversions to QCDs and expense planning — you can take control of your retirement income and potentially reduce your tax burden.

And if all this sounds overwhelming, don’t worry — a fiduciary financial advisor can help you personalise these strategies to suit your needs.