FRONT PORCH MONEY · Issue #3
Good morning. Today: a year-end deadline that's 69 days away, a form that can beat your will, and a scam aimed at grandparents.
THE BIG ONE: Your year-end RMD checklist
What changed: Nothing in the rules. But the deadline is getting close.
If you're 73 or older, you generally must take a required minimum distribution, or RMD, each year. It applies to traditional IRAs and most workplace plans, like 401(k)s. For most people, the deadline is December 31.
Your very first RMD can wait until April 1 of next year. But then you take two in one year. That means more taxable income in a single year.
What it means for your check: Skip a $10,000 RMD and you could owe $2,500 in tax. That's a 25% excise tax. Fix it within two years, and it can drop to $1,000, or 10%.
What to do: You have 69 days until December 31. Call your IRA company soon. Ask for your 2026 RMD amount and how long a withdrawal takes. Don't wait until late December.
Give to charity? Look at a qualified charitable distribution, or QCD.
You must be at least 70½. The money goes straight from your IRA to the charity.
A QCD can count toward your RMD, and it's generally not taxed. The 2026 limit is $111,000.
RATE WATCH
The best safe yields we found this week. The full table comes every Saturday.
Safe yield | Best this week | Where |
|---|---|---|
Online savings | About $427 a year on $10,000 (4.27% APY). As of Oct. 22. | Peak Bank (online). No promo, $100 to open. |
1-year CD | About $460 a year on $10,000 (4.60% APY). As of Oct. 21. | Popular Direct (online). $10,000 minimum. |
6-month Treasury bill | About $435 a year on $10,000 (4.35%). As of Oct. 21. | TreasuryDirect or a brokerage |
5-year fixed annuity (MYGA) | About $605 a year on $10,000 (6.05%). As of Oct. 22. | Athene, rated A+ by AM Best. $100,000 minimum. Insurance product, not a bank deposit, not FDIC-insured. |
Dollar figures are about one year's interest on $10,000. Savings and annuity rates as of October 22, 2026; CD rates as of October 21, 2026; T-bill as of October 21, 2026. Rates change often. Annuities aren't bank deposits and aren't FDIC-insured.
ONE SMART MOVE: Check who's named on your accounts
The beneficiary form on an account can override your will. Say your will splits an account between two children. If the form names only one, that child gets it all.
This week, check the beneficiaries on your IRA, 401(k) and brokerage accounts. Ask each company who's listed. Update anything that no longer matches your wishes.
SCAM WATCH: The "grandparent" call
The caller sounds like a grandchild in trouble who needs money right now. Some scammers use AI to copy a loved one's voice from a short clip. They ask for gift cards, a wire transfer, a payment app or cryptocurrency.
What to do: Hang up. Call your family member at a number you know is right.
Check with another relative, even if the caller asked you to keep it secret. Report it at ReportFraud.ftc.gov.
ASK FRONT PORCH
A question we hear a lot: "I'm 74 and still working. Do I have to take an RMD?"
It depends on the account. For your current employer's plan, you can generally wait until the year you retire. That break doesn't apply if you're a 5% owner of the business.
IRAs don't get this break. Traditional IRA owners must start RMDs at 73, working or not.
Ask your plan how its rules apply to you. A tax preparer can help with the details.
That's it for today. Hit reply and send us your biggest money question. We read every one.
— The Front Porch Money team
Front Porch Money isn't affiliated with Medicare, Social Security, the IRS or any government agency.
Front Porch Money is general education, not personal financial, tax, legal or investment advice. Some links are from partners who may pay us; see our disclosures.
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