The short answer: Florida does not tax your income, but the IRS still does. Many people with IRAs and 401(k)s must take "required minimum distributions" (RMDs) by December 31 each year. Missing one can bring a federal penalty. Those withdrawals can also raise income used to set your Medicare Part B premium two years later.
This guide explains general rules in plain language. It is not tax or financial advice, and Florida Senior Support is not a law firm, financial advisor or insurance agency. For advice about your own situation, talk to a licensed professional.
Why Year-End Matters
It is late October 2026. For many retirees, the calendar year is the deadline for several money rules at once. This guide covers three of them in plain terms: RMDs, qualified charitable distributions (QCDs) and Medicare's income-based premium surcharge, called IRMAA.
It explains how the rules work. It does not tell anyone how much to withdraw or give. A tax professional can look at your own numbers.
Florida Has No Personal Income Tax
The Florida Constitution limits state income taxes on people. Article VII, Section 5 says the state cannot tax the income of natural persons (real people, not companies) beyond the amount that can be credited against a similar federal tax. In practice, that means Florida has no personal income tax. (Source: Florida Constitution, Article VII.)
So an IRA withdrawal is not taxed by Florida. It can still be taxed by the federal government. Florida still has other taxes, such as property tax, but they are outside the scope of this guide.
Required Minimum Distributions (RMDs)
What an RMD is
Money in a traditional IRA or a workplace plan such as a 401(k) has usually not been taxed yet. The government does not let it sit there forever. At a certain age, owners must start taking out a minimum amount each year. The withdrawal is generally taxed as income.
The starting age
Under the SECURE 2.0 Act, the starting age is 73 for people born from 1951 through 1958. For people born in 1960 or later, it rises to 75. The law's wording left people born in 1959 unclear. IRS proposed rules issued in 2024 say age 73 for that group, so ask a tax professional if that is your birth year. (Sources: IRS RMD FAQs and IRS Internal Revenue Bulletin 2024-33.)
The deadlines
- Every year after the first: December 31.
- The first RMD: It may be delayed until April 1 of the next year. The IRS gives this example: if you turn 73 in 2024, your first RMD is due by April 1, 2025. Your second is due by December 31, 2025.
That delay means two RMDs can land in the same tax year, which can mean more income that year. (Source: IRS RMD FAQs.)
The penalty for missing one
If you do not take enough, the IRS may charge a 25% excise tax on the amount you should have taken but did not. The rate drops to 10% if the RMD is corrected within two years. The tax is reported on IRS Form 5329. (Source: IRS: Required minimum distributions.)
Different accounts, different rules
Rules differ by account type. A traditional IRA, a 401(k) and an inherited account can each work differently. Your financial company can often tell you what it calculates for each account. A tax professional can check the math.
Qualified Charitable Distributions (QCDs)
A QCD is a way to give money to charity straight from an IRA. Here is how the IRS describes the basics:
- Age: The IRA owner must be at least 70½ on the day of the gift. This is earlier than the RMD age.
- It must go directly to the charity. The IRA company pays the charity. If the money is paid to you first, it is not a QCD.
- The 2026 limit: $111,000 per person, up from $108,000 in 2025. The limit is raised for inflation each year. (Source: IRS Notice 2025-67.)
- It counts toward the RMD. A QCD can count toward an owner's RMD for that year.
- Tax treatment: A QCD is generally left out of taxable income. You need a written receipt from the charity, and the gift must go to an eligible charity.
(Source: IRS: Donating to charity through your IRA. That page is an older IRS tip that lists an old $100,000 limit, so use the notice above for the 2026 figure.)
A QCD must be completed by the end of the year to count for that year. IRA companies often need time to process a check to a charity, so ask yours about its timing. Whether a QCD makes sense for someone is a question for a tax professional.
Medicare IRMAA: When Income Raises Your Premium
Most people pay the standard Medicare Part B premium. For 2026, it is $202.90 a month. People with higher income pay more. The extra amount is called the Income-Related Monthly Adjustment Amount, or IRMAA. (Source: CMS 2026 Medicare premiums fact sheet.)
Two years behind
Social Security decides who pays IRMAA, and it uses an old tax return. For 2026 premiums, it generally uses modified adjusted gross income (MAGI) from your 2024 return. If 2024 data was not available, it uses 2023. (Source: SSA Program Operations Manual, HI 01101.031.)
This means a large IRA withdrawal in 2026 can affect the premium you pay in 2028. MAGI is your adjusted gross income plus certain tax-exempt interest. Your tax preparer can tell you the number from your return.
The 2026 starting points
For 2026, IRMAA starts when MAGI is above these amounts:
| Filing status | No surcharge up to | Top tier starts at |
|---|---|---|
| Single | $109,000 | $500,000 |
| Married filing jointly | $218,000 | $750,000 |
In between are several steps. The total monthly Part B premium in 2026 runs from $202.90 at the bottom to $689.90 at the top tier. (Sources: CMS; SSA.) Each step starts at a set dollar amount, so a small change in income can move someone from one step to the next. Check Social Security's current table for the exact amount at each step.
If your income dropped
Your income may be lower now than it was two years ago. If a major life event caused that, you can ask Social Security to use a more recent year. You do this with Form SSA-44, "Medicare Income-Related Monthly Adjustment Amount - Life-Changing Event." The form lists the events that qualify. (Source: SSA-44.)
If you get an IRMAA notice, it also explains how to appeal. You can call Social Security at 1-800-772-1213.
A Simple Year-End Paper Checklist
These are neutral tasks many people do. None are advice on what to withdraw or give.
- Gather your IRA and 401(k) statements for every account.
- Note your birth year and the RMD start age that goes with it.
- Check whether your financial company has already calculated this year's RMD.
- Keep any written receipts from charities.
- Keep your last two tax returns handy. Social Security uses them for IRMAA.
- Write down questions for a tax professional before December.
Related Guides
- For a wider look at money planning, read financial planning for Florida seniors.
- To learn what to ask a professional, see how to find the right financial planner.
- Your Social Security check also changes each year. See the 2027 Social Security COLA.
- If Medicare costs are a strain, learn about Medicare Savings Programs in Florida.
Where to Get Free Help
- IRS: 1-800-829-1040 for general tax questions.
- Free tax help for people 60 and older: The IRS Tax Counseling for the Elderly (TCE) program offers free tax help, focused on pension and retirement questions. Most TCE sites are run by AARP Tax-Aide. To find a site, call 1-800-906-9887 (IRS) or 1-888-227-7669 (AARP). Site lists are updated in the filing season. (Source: IRS: Free tax return preparation.)
- Social Security: 1-800-772-1213, for questions about IRMAA or Form SSA-44.
- Florida Elder Helpline: 1-800-96-ELDER (1-800-963-5337). SHINE gives free Medicare counseling through this number. See also our Medicare Open Enrollment guide.
- Florida Senior Legal Helpline: 1-888-895-7873, for ages 60 and up (income guidelines apply, weekdays 9 to 4:30). See also our guide to free legal help for seniors.
- Florida Bar Lawyer Referral Service: 1-800-342-8011.
Disclaimer: This article is for informational purposes only and does not constitute medical, financial, or legal advice. Readers should consult a qualified healthcare provider for medical concerns, a financial advisor for financial planning, and an attorney for legal matters. The resources and programs mentioned are subject to eligibility requirements and availability, which may vary. While we strive for accuracy, the information provided may not reflect the most recent updates. Always verify details with official sources or professionals before making decisions based on this content.