Direct answer: In your 70s, automate your RMD withdrawal (set a standing distribution instruction at your custodian), qualified charitable distributions if you donate, monthly income transfers from your portfolio to your bank account, and annual beneficiary designation reviews. Designating a trusted contact at each institution adds a low-effort protection layer.
What to Automate in Your 70s
Automating RMD Withdrawals
Most IRA and 401(k) custodians offer an automatic RMD service. You set a standing instruction once, and the custodian calculates your annual RMD each January based on your prior December 31 account balance, then distributes that amount in regular installments (monthly or quarterly) to a linked bank account.
The primary benefit is deadline protection. The RMD deadline is December 31 each year (April 1 in the first year only), and missing it triggers a 25% excise tax on the amount not withdrawn. An automated instruction removes the risk of forgetting or delaying past year-end. Review the scheduled amount each January to confirm it updated correctly based on your current balance.
If you have multiple IRAs, the total RMD is calculated across all of them, but you can take the full amount from any one or a combination. Most people simplify by taking the full amount from a single account. If you have a 401(k) at a former employer, its RMD must be taken from that plan specifically and cannot be aggregated with IRA distributions.
Automating QCD Transfers
A qualified charitable distribution (QCD) is a direct transfer from a traditional IRA to an eligible 501(c)(3) charity. It counts toward your RMD but is excluded from your taxable income, which can reduce Medicare IRMAA surcharges and the share of Social Security that is taxable.
To set up a recurring QCD, contact your IRA custodian. You will need the charity's full legal name, mailing address, and federal tax identification number. The custodian issues a check payable to the charity or sends a wire directly. You must be age 70 1/2 or older, and the distribution must go directly to the charity (never to you first, even temporarily).
The annual QCD limit is $105,000 per person as of 2026 (indexed for inflation). Many custodians allow a standing annual QCD instruction so you do not need to initiate it manually each year. Confirm with your custodian that the letter of acknowledgment from the charity is on file for tax records.
Income Distribution Automation
If your portfolio generates dividends and interest, automate their transfer to your bank account rather than reinvesting them. In your 70s, you likely need this income for spending; sweeping it to a settlement fund and then manually transferring it adds unnecessary steps.
Set a monthly or quarterly automated sweep from your brokerage settlement fund to your primary checking account. This creates a predictable income cadence and reduces the temptation to time transfers with market conditions. Review the sweep amount annually and adjust if spending needs change.
Designating a Trusted Contact
A trusted contact is a person your financial institution can reach if they have concerns about your account, such as signs of financial exploitation, unusual transaction requests, or inability to contact you. The trusted contact cannot transact on your behalf or access account balances; they only provide contact information if the firm calls them.
FINRA recommends that all account holders, particularly those over 65, designate a trusted contact. The process takes a few minutes at each custodian. Choose someone you trust who is not a financial beneficiary of your estate, such as an adult child not named as a beneficiary, a long-time friend, or an attorney.
Annual Beneficiary Designation Review
Beneficiary designations on IRAs, 401(k)s, life insurance policies, and annuities override your will. A calendar reminder each January to review these takes only minutes and prevents costly errors. Common problems include: a former spouse still listed as primary beneficiary, a deceased person listed with no contingent designated, or a beneficiary designation that creates an unintended taxable event for heirs.
In your 70s, also verify that any applicable trusts are correctly named and that the trust document has not expired or changed. Update designations after any major life event: death of a beneficiary, marriage, divorce, or significant change in a beneficiary's circumstances.
Related guides: Annual Review Checklist, First Financial Priorities in Your 70s
Frequently Asked Questions
Can I automate my RMD withdrawal?
Yes. Most major brokerage and IRA custodians offer an automatic RMD service. You can set a standing instruction to distribute a calculated or fixed dollar amount monthly, quarterly, or annually, with the funds transferred directly to a linked bank account. The custodian typically recalculates the RMD each January based on the prior December 31 balance and updates the scheduled amount. Setting this up removes the risk of missing the December 31 deadline and eliminates the need to manually initiate a distribution each year.
What is a trusted contact?
A trusted contact is a person you designate with your financial institution who can be contacted if the firm has concerns about your account, such as signs of financial exploitation, unusual activity, or inability to reach you. The trusted contact cannot access your accounts or make transactions on your behalf; they can only provide information to the firm when contacted. Designating one is a FINRA-recommended practice for older investors and takes only a few minutes to complete with your brokerage or IRA custodian.
How do I set up a qualified charitable distribution?
A qualified charitable distribution (QCD) is a direct transfer from your traditional IRA to an eligible 501(c)(3) charity. To set one up, contact your IRA custodian and request a QCD transfer. You will need the charity's legal name, mailing address, and tax identification number. The custodian issues a check payable to the charity or sends a direct wire. You must be age 70 1/2 or older, the transfer must go directly to the charity (never to you first), and the limit is $105,000 per person per year as of 2026 (indexed for inflation). The amount counts toward your RMD but is excluded from your taxable income, which can reduce Medicare premiums and Social Security taxation.