Direct answer: Every year in your 70s, verify your RMD has been taken or scheduled before December 31, check that your withdrawal rate is sustainable, review Medicare open enrollment (October 15 through December 7), update beneficiary designations, and confirm your estate plan reflects your current wishes.
Your Annual Financial Review Checklist for Your 70s
RMD Verification (Before December 31)
Required Minimum Distributions from traditional IRAs, 401(k)s, and most other tax-deferred accounts must be taken by December 31 each year. Failure to take the full RMD results in an excise tax of 25% of the shortfall (reduced to 10% if corrected promptly). Roth IRAs have no RMD requirement during the owner's lifetime; Roth 401(k)s and Roth 403(b)s were previously subject to RMDs but are exempt for plan years beginning after 2023.
If you do not need your full RMD for living expenses, consider whether a qualified charitable distribution (QCD) of up to $108,000 in 2026 would be useful. A QCD goes directly from your IRA to a qualifying 501(c)(3) charity, satisfies your RMD, and is excluded from your gross income, which can reduce your Medicare IRMAA surcharges, the taxable portion of your Social Security benefit, and your overall tax bracket. The distribution must go directly from custodian to charity; you cannot take the distribution yourself and then donate it.
Withdrawal Rate Review
A sustainable withdrawal rate in your 70s depends on your current portfolio balance, your anticipated spending over your remaining years, and your other income sources (Social Security, pensions, annuity income). The standard 4% guideline was designed for a 30-year retirement starting in your 60s; starting in your 70s gives you a shorter horizon, which can support a somewhat higher rate, but sequence-of-returns risk remains real in the early years of retirement regardless of when you start.
Each year, compare your actual withdrawals against your portfolio balance. If you are withdrawing more than 5% annually from a declining portfolio, that is a signal to review spending or consider adjustments. A fee-only financial planner can model your specific situation using current balances and realistic return assumptions.
Medicare Open Enrollment (October 15 to December 7)
Medicare Annual Enrollment runs from October 15 through December 7 each year. During this window you can switch from Original Medicare (Parts A and B) to a Medicare Advantage plan (Part C), switch between Medicare Advantage plans, return from Medicare Advantage to Original Medicare, and add, drop, or switch Medicare Part D prescription drug plans. Changes take effect January 1 of the following year.
Each year, review your current plan's formulary to confirm your medications are still covered at the same tier, compare premiums and out-of-pocket maximums, and check whether your preferred doctors and hospitals remain in-network if you are on Medicare Advantage. Medicare plan details change annually and a plan that was optimal last year may not be optimal this year.
Beneficiary Designation Review
Beneficiary designations on retirement accounts (IRAs, 401(k)s) and insurance policies override your will. A beneficiary named before a divorce, remarriage, or the death of a named individual may no longer reflect your intentions. Review beneficiary designations on every account annually and update any that are outdated, blank, or name an estate as beneficiary (which typically forces probate and eliminates the 10-year inherited IRA distribution option for individual beneficiaries).
Confirm that both primary and contingent beneficiaries are named on each account. If a primary beneficiary predeceases you and no contingent is named, the account may pass to your estate by default rather than to the people you intended.
Estate Plan Review and Account Simplification
Review your will, trust (if any), durable power of attorney, and advance healthcare directive annually to confirm they reflect your current wishes and that the named individuals are still appropriate and willing to serve. A trusted executor, trustee, or healthcare proxy who has moved, become ill, or had a significant change in their own circumstances may no longer be the right choice. Update documents as needed; stale estate plans are one of the most common sources of problems during estate administration.
Account simplification reduces the administrative burden on your eventual executor and on your DPOA agent if you become incapacitated. Each year, identify whether any accounts can be consolidated: unnecessary brokerage accounts, old 401(k)s from former employers that could be rolled into a current IRA, duplicate checking accounts. Fewer accounts with larger balances are easier to manage and transfer than many small scattered accounts.
Related guides: First Financial Priorities in Your 70s, Involving Family in Your Finances, Estate Planning for Investors
Frequently Asked Questions
What is the RMD deadline?
Required Minimum Distributions must be taken by December 31 each year. The one exception is your very first RMD: if you turned 73 in the current year, you have until April 1 of the following year to take it, but taking two distributions in one year will increase your taxable income for that year. A qualified charitable distribution (QCD) of up to $108,000 in 2026 can satisfy all or part of your RMD while being excluded from your gross income, provided the distribution goes directly from your IRA to a qualifying 501(c)(3) charity.
Can a QCD satisfy my RMD?
Yes. A qualified charitable distribution from a traditional IRA to a qualifying 501(c)(3) charity counts toward your Required Minimum Distribution for the year. The amount excluded from income is limited to $108,000 per year in 2026. The distribution must go directly from the IRA custodian to the charity; you cannot take the distribution yourself and then donate it. You must be age 70½ or older to make a QCD. QCDs do not generate a charitable deduction on Schedule A, but the exclusion from gross income is often more valuable than a deduction, particularly if you take the standard deduction.
When is Medicare open enrollment?
Medicare Annual Enrollment Period runs from October 15 through December 7 each year. During this period you can switch from Original Medicare to a Medicare Advantage plan, switch between Medicare Advantage plans, or return from Medicare Advantage to Original Medicare. You can also add, drop, or switch Medicare Part D prescription drug plans during this period. Changes take effect January 1 of the following year. Compare plans each year: formularies change, premiums change, and your own medication needs may have changed.