If you’ve spent any time strolling down the Hill Country Mile or enjoying a quiet morning on your back porch overlooking the Guadalupe River, you know that Boerne is all about a slower, more intentional pace of life. Retirement here is meant to be peaceful, but for many, there is a recurring "financial cloud" that tends to drift in every year: Required Minimum Distributions, or RMDs.
For years, the rules surrounding RMDs were relatively static. You reached age 70½, and the IRS came knocking, requiring you to start taking money out of your tax-deferred retirement accounts. But thanks to recent legislative changes: specifically the SECURE Act and SECURE Act 2.0: the goalposts have moved.
At Retire in Boerne, we believe that understanding these changes shouldn’t feel like a chore. While we provide the lifestyle inspiration, the team at Mau Sanchez Capital specializes in the heavy lifting: designing the specific retirement income and investment strategies needed to navigate these rules.
Here is what every Boerne retiree needs to know about RMDs in 2026 and beyond.
What Exactly Is an RMD?
An RMD is the minimum amount the IRS requires you to withdraw from certain retirement accounts each year once you reach a specific age. Because most retirement accounts (like Traditional IRAs and 401(k)s) allowed you to contribute money tax-free and grow those funds tax-deferred, the government eventually wants their share of the pie.
RMDs apply to:
- Traditional IRAs
- SEP IRAs
- SIMPLE IRAs
- 401(k), 403(b), and 457(b) plans
The one notable exception for original owners is the Roth IRA. Since you’ve already paid taxes on the money you put into a Roth, the IRS generally doesn’t force you to take it out during your lifetime. This is why many families we work with at Mau Sanchez Capital prioritize building up Roth assets as part of a long-term wealth preservation strategy.
The New Timeline: When Do You Actually Start?
The biggest question most retirees have is: "When do I have to start taking the money?" Under SECURE Act 2.0, the answer depends entirely on your birth year.
As of 2026, here are the general rules:
- If you were born between 1951 and 1959: Your RMD age is 73.
- If you were born in 1960 or later: Your RMD age will be 75 (though this higher age doesn't officially kick in until 2033).
For many Boerne residents currently transitioning into retirement, this delay to age 73 provides a valuable "planning window." This extra time allows for strategic moves: like Roth conversions or rebalancing portfolios: before forced taxable income begins.
Calculating the Distribution: It’s Not a Guessing Game
The amount you must withdraw isn’t a flat percentage. It is calculated by taking your account balance as of December 31st of the previous year and dividing it by a life expectancy factor provided by the IRS.
For example, if you are 73, the IRS uses their Uniform Gift Table to determine your distribution period. As you get older, that factor decreases, meaning the percentage you are required to withdraw increases.
One common mistake retirees make is forgetting that they have multiple accounts. If you have three different Traditional IRAs, you can calculate the total RMD for all of them and take the entire amount from just one of the accounts. However, if you have a 401(k) from a former employer, you must calculate and take that RMD specifically from that 401(k) account.
The Cost of a Mistake: Penalties and Pitfalls
The IRS takes RMDs very seriously. In the past, the penalty for failing to take your full distribution was a staggering 50% of the amount you missed.
Fortunately, SECURE Act 2.0 reduced this penalty to 25%. If you correct the mistake quickly (generally within two years), that penalty can even be reduced further to 10%. While a 10% or 25% "tax" on a mistake is better than 50%, it is still an unnecessary drain on your retirement savings that could be spent enjoying a nice dinner at Peggy's on the Main instead.
Smart Strategies for Boerne Retirees
Taking an RMD doesn’t always mean you have to spend the money, nor does it mean you have to lose a massive chunk to taxes. Here are a few ways retirees in the Hill Country are managing their distributions:
1. The Qualified Charitable Distribution (QCD)
For many in Boerne, community involvement and philanthropy are a way of life. If you are 70½ or older, you can utilize a Qualified Charitable Distribution. This allows you to transfer up to $111,000 (as of 2026) directly from your IRA to a qualified 501(c)(3) nonprofit.
The beauty of the QCD is that the money counts toward your RMD but is not included in your adjusted gross income. This can be a powerful tool for supporting local Boerne charities while keeping your tax bill low.
2. Reinvesting in Publicly Traded Markets
Many of our readers find that their RMD provides more cash flow than they actually need for their daily lifestyle. In these cases, the "forced" withdrawal shouldn't be seen as an exit from the market. At Mau Sanchez Capital, we often help clients take their RMD (after setting aside for taxes) and move it into a taxable brokerage account.
By staying invested in transparent, liquid, publicly traded markets: primarily stocks and high-quality fixed income: you can maintain your long-term equity ownership and continue to participate in market growth. We believe in avoiding the complexity and high fees of "alternative" lock-up investments, focusing instead on a disciplined asset allocation that matches your risk tolerance.
3. Roth Conversions in the "Gap Years"
If you are 65 and don't have to take RMDs until age 73, you have an eight-year "gap." This is often an ideal time to perform Roth conversions. By paying the taxes now at potentially lower rates, you can move money from a Traditional IRA to a Roth IRA, where it will never be subject to RMDs again.
Why a Professional Partner Matters
Navigating the transition from "saving" to "spending" is one of the most complex shifts a retiree can make. It’s no longer just about picking stocks; it’s about tax efficiency, timing, and protecting your lifestyle against inflation.
While Retire in Boerne is your go-to resource for discovering the best hiking trails or finding the perfect cup of coffee, the technical side of your retirement requires a fiduciary's touch.
At Mau Sanchez Capital, the focus is on client-specific portfolio design that emphasizes liquidity, transparency, and cost efficiency. Retirement should be about enjoying the Hill Country, not worrying about IRS tables and penalty percentages.
"A well-constructed retirement plan isn't just about the numbers on a screen; it's about the confidence to live your best life in the community you love." : Mau Sanchez
If you’re approaching RMD age or want to ensure your current distribution strategy is as efficient as possible, don't wait for the December 31st deadline to loom over you.
Schedule a private meeting with a fiduciary financial advisor today by calling (512) 593-8380 or by visiting: https://calendly.com/portafoliocapital/15min
To learn more about the investment philosophy and retirement services offered, visit https://portafoliocapital.com/ or give us a call at (512) 593-8380.
Portafolio Capital Management dba Mau Sanchez Capital is a Registered Investment Adviser. This content is for informational purposes only and does not constitute investment advice or a solicitation to buy or sell any security. Advisory services are provided only pursuant to a written advisory agreement.
This article may include stories, scenarios, and perspectives created or assisted by artificial intelligence. Although the individuals and circumstances described may be fictional, the topics are intended to reflect real financial, personal, and lifestyle issues that retirees and individuals commonly face.
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