"Getting money out of that account earlier rather than later allows the net proceeds to be reinvested sooner in long-term gain-producing investments that will get a stepped-up basis at death ... The retiree who takes the RMD late in the year is seeking some or all of the following advantages: The gross income generated by the distribution is not taxable until as late as possible.... The longer the RMD stays in the IRA, the more tax-deferred income it can generate.... You have a better chance of getting in on any tax rule changes that occur late in the year."