You can collect your annual RMD in a lump sum or in parts, perhaps in monthly or quarterly payments. However, delaying the RMD until the end of the year gives your money more time to increase deferred taxes. Either way, make sure to withdraw the full amount before the deadline. The advantage of waiting to apply for your RMD at the end of the year is the possibility of earning additional tax-deferred profits.

However, if the markets fall in a given year, it would be better if you had made your distributions early. This is a risk factor to consider after long periods of market appreciation. You can make the required minimum distribution at any time, as long as it is done before the end of the year. Most retirees receive their money in a lump sum at the end of the year to have more time to grow tax-free.

Others withdraw their money every month to have a regular flow of income.