Turn Your RMD Into a Smooth Monthly Paycheck

A cash‑flow calendar aligns RMDs, dividends, interest, Social Security, and your budget so there are no surprises. Here’s a simple process to predict and automate the year.

Step 1: Estimate the Year’s RMD and Income Streams

• Estimate RMD with the RMD Table Calculator
• List Social Security, pensions, and annuity payments
• Add expected dividends/interest; note payment months

Step 2: Build the 12‑Month Grid

• Rows: months Jan–Dec; Columns: sources (RMD, SS, dividends, interest) and uses (housing, utilities, insurance, taxes, travel)
• Highlight months with bigger expenses (property tax, insurance)
• Decide RMD frequency: monthly/quarterly/annual (annual pairs well with late‑year withholding)

Step 3: Set Withholding and QCDs

• Use late‑year RMD withholding to hit safe harbor if quarterly estimates are low: Withholding vs. Estimates
• If charitably inclined, schedule QCDs to satisfy part of the RMD: QCD Guide

Step 4: Integrate the Budget

• Plug the calendar into your categories; trim wants in heavy‑expense months
• Keep a 12–24 month cash bucket for resilience: see Retirement Bucket Strategy

Step 5: Quarterly Check‑Ins

• Re‑forecast dividends/interest after market moves
• Adjust RMD cadence if cash builds up or runs tight
• Document changes in a one‑page “RMD map” for next year

Example

Lena takes one RMD in December with 25% withholding to meet safe harbor. Monthly spending is covered by Social Security, dividends, and a cash bucket. In June and November, she re‑forecasts and preps for December taxes/QCDs.

What to Do Next

• Estimate your RMD: RMD Table Calculator
• Learn QCD mechanics: QCD Complete Guide
• Build your bucket sleeve: Retirement Bucket Strategy