FAQs on RMDs: What United Natural Foods Employees Need to Know

Healthcare Provider Update: Healthcare Provider for United Natural Foods United Natural Foods, Inc. (UNFI) typically partners with major national health insurers for employee healthcare benefits. Although specific partnerships can vary over time and may depend on employee location and plan selection, large insurance providers such as UnitedHealthcare and Anthem Blue Cross Blue Shield are common choices among employers in the food distribution sector. Potential Healthcare Cost Increases in 2026 As we head into 2026, United Natural Foods employees should brace for significant increases in healthcare costs. With the anticipated expiration of enhanced federal subsidies under the Affordable Care Act, many could see out-of-pocket premiums rise dramatically-by as much as 75% for some. Additionally, systemic medical inflation and rising pharmaceutical prices, particularly for specialty drugs, further exacerbate these cost pressures. As employers navigate this challenging landscape, a major shift in healthcare benefits is expected, with many companies likely to pass a greater share of expenses onto employees in an effort to mitigate rising healthcare expenditures. Click here to learn more

'RMDs may feel restrictive, but for United Natural Foods employees they also create structured opportunities to rebalance portfolios, manage taxable income, and strengthen long-term planning.' – Paul Bergeron, a representative of The Retirement Group, a division of Wealth Enhancement.

'By treating RMDs as a planning tool rather than just a tax requirement, United Natural Foods employees can use them to create flexibility in withdrawals and align retirement income with broader financial goals.' – Tyson Mavar, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article, we will discuss:

1. Which retirement accounts are subject to RMDs and recent legislative changes.

2. Strategies that United Natural Foods employees can use to manage the tax impact of RMDs.

3. How market conditions and long-term planning interact with RMD requirements.

By Wealth Enhancement Group's Brent Wolf

RMDs, or required minimum distributions, are a critical consideration for retirement income planning. Because they are required, they are sometimes seen as burdensome, but they also offer opportunities for careful money management. For United Natural Foods employees, understanding how RMDs work and incorporating them into a broader strategy can help improve portfolio efficiency and mitigate long-term tax impacts.

Accounts Subject to RMDs

Traditional tax-deferred retirement accounts, which are funded with pre-tax contributions and grow tax-deferred, fall under RMD rules. These include SEP IRAs, 403(b) plans, 401(k) plans, 457 plans, and traditional IRAs. Once individuals reach a certain age, withdrawals are mandatory. Roth accounts stand out as exceptions. Roth IRAs remain permanently free of RMDs, while Roth 401(k) plans are also exempt under recent legislation. For United Natural Foods workers nearing retirement, this exemption may enhance the role that Roth accounts can play as long-term planning tools, since assets can continue growing without taxable withdrawals.

Changing Ages for RMDs

The age at which retirees must begin taking RMDs has shifted in recent years. For decades, it was 70½. It later increased to 72, and then to the current age of 73. Beginning in 2033, the starting age will move again to 75. For United Natural Foods retirees, these adjustments provide more flexibility and open a wider window to implement strategies such as Roth conversions, systematic withdrawals, or portfolio rebalancing before RMDs take effect.

Why RMDs Are Often Disliked

RMDs are unpopular among retirees who don't require the funds for their current living expenses because they trigger taxable income. This added income can push retirees into higher tax brackets, raising their overall tax burden. For United Natural Foods employees with substantial retirement savings, RMDs can also affect Medicare costs through higher income-related monthly adjustment amount (IRMAA) surcharges. In many cases, RMDs represent a significant annual tax consideration for households.

Techniques to Manage RMDs

Although RMDs for traditional accounts cannot be fully eliminated, several approaches can help reduce their taxable impact:

• Pre-Retirement Diversification:  Spreading savings across Roth accounts, taxable brokerage accounts, and traditional retirement plans may lower future RMD obligations.

• The Early Retirement Window:  For those who stop working before 73, the years between retirement and the first RMD are often lower-income years—ideal for Roth conversions or accelerated withdrawals at more favorable tax rates.

• Qualified Charitable Distributions (QCDs):  Starting at 70½, IRA owners can direct RMD distributions directly to qualified charities, rather than taking them themselves, reducing taxable income while meeting RMD requirements and achieving charitable goals.

• Still Working Past 73:  Employees still working at United Natural Foods after age 73 may be able to delay RMDs on their active employer plan.

• Legacy Planning:  Roth conversions, even after RMDs start, can lower the taxable inheritance left to beneficiaries, aiding in estate planning.

Market Conditions and RMDs

A common question is whether market downturns affect RMD amounts. The answer is no—RMDs are based on account balances as of December 31 of the prior year. Short-term fluctuations do not alter the required withdrawal. While Congress has occasionally suspended RMDs during crises, such as in the pandemic, these suspensions remain rare.

Turning RMDs Into Opportunities

Although RMDs are mandatory, they can be reframed as tools for portfolio management. By selling from overweighted positions, retirees can meet their RMD while also rebalancing. For United Natural Foods retirees with large equity allocations, this may mean using withdrawals to trim stock-heavy portfolios in favor of diversification.

Additionally, funds withdrawn through RMDs need not sit idle. If not required for daily expenses, they can be reinvested into a Roth IRA (subject to eligibility) or taxable brokerage account. This reinvestment can help maintain long-term portfolio growth.

Conclusion

While RMDs are often viewed as mandatory tax obligations, United Natural Foods employees can approach them strategically. Diversifying account types before retirement, making use of early retirement years, using QCDs, and considering Roth conversions all provide ways to manage the impact. When integrated into a broader financial plan, RMDs can serve as both compliance and opportunity—helping retirees sustain portfolio health, mitigate taxes, and extend financial growth into the future.

Custodians typically calculate RMD amounts and provide reminders, but the responsibility to take the correct distribution rests with the account holder. By anticipating these requirements and using them to rebalance or reinvest, United Natural Foods retirees can approach RMDs as part of a proactive retirement strategy.

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Sources:

Internal Revenue Service.  Publication 590-B: Distributions from Individual Retirement Arrangements (IRAs).  U.S. Department of the Treasury, Mar. 19, 2025. pp. 6–7, 37.  https://www.irs.gov/publications/p590b

Myers, Elizabeth A.  Required Minimum Distribution (RMD) Rules for Original Owners of Retirement Accounts.  Congressional Research Service, 29 Aug. 2024. p. 1.  https://crsreports.congress.gov/product/pdf/IF/IF12750

Centers for Medicare & Medicaid Services.  Medicare Costs 2025.  CMS Product No. 11579, Dec. 2024. pp. 2–3.  https://www.cms.gov/newsroom/fact-sheets/2025-medicare-parts-b-premiums-and-deductibles

Social Security Administration.  Form SSA-44: Medicare Income-Related Monthly Adjustment Amount — Life-Changing Event.  SSA, Dec. 2024. pp. 1, 5–7.  https://www.ssa.gov/forms/ssa-44.pdf

Financial Industry Regulatory Authority.  Thinking About Rolling Over Funds From Your Thrift Savings Plan? Consider This.  FINRA, Nov. 2024. p. 2.  https://www.finra.org/investors/military/retirement/roll-over-tsp