The IRS gives many first-time RMD takers an extra three months, but using that extension can compress two required withdrawals into one tax year. Traditional IRA owners generally must begin required minimum distributions for the year they turn 73.
The first payment may be delayed until April 1 of the next year. The second payment is still due by December 31 of that same next year, creating the double-withdrawal problem.
Why Two Deadlines Collide
The IRS RMD guidance explains that the first distribution can be postponed until April 1 of the year after age 73. Every later distribution is due by December 31.
Someone who turns 73 in one year and waits until the following March for the first RMD must still take the following year’s RMD by that December. Both distributions can appear as taxable income in the same calendar year.
The Tax Cost Is Household-Specific
Two RMDs do not automatically create a higher tax bracket, and delaying is not always a mistake. The result depends on other income, deductions, account balances and the timing of retirement.
Still, the extra taxable income can affect more than the federal bracket. It can influence the taxable share of Social Security and the income used later to calculate Medicare’s income-related premium surcharges.
IRAs and Workplace Plans Do Not Always Match
Traditional, SEP and SIMPLE IRA owners generally must start at the applicable RMD age even if they keep working. Some employer plans allow a non-owner employee to delay distributions until retirement, but the plan document controls.
RMD aggregation rules also differ. Multiple traditional IRAs can generally be calculated separately and satisfied from one or more IRAs, while workplace-plan distributions often must be handled plan by plan.
The Comparison to Make Before April
The useful calculation compares two scenarios: taking the first RMD by December 31 of the age-73 year or postponing it into the next year. Each scenario should include other expected income and the possible Medicare effect two years later.
The deadline extension is a choice, not a command. Making that choice before the first year closes leaves more room to manage taxable income than discovering the double-up after April arrives.
How the Amount Is Calculated
An RMD is generally calculated by dividing the prior December 31 account balance by a life-expectancy factor in IRS Publication 590-B. Most owners use the Uniform Lifetime Table. A different table can apply when the sole beneficiary is a spouse more than ten years younger, while inherited accounts follow a separate set of rules.
The custodian may calculate an IRA’s amount, but the owner remains responsible for taking the correct total on time. Market losses after December 31 do not automatically reduce that year’s required distribution because the calculation begins with the earlier year-end balance. That timing can make a falling market feel especially painful.
Inherited Accounts Need Their Own Review
A beneficiary should not copy the original owner’s schedule without checking the inherited-account rules. Spouses can have options that nonspouse beneficiaries do not, and many nonspouse beneficiaries are subject to a ten-year distribution period. Annual RMD requirements inside that period can depend on whether the owner died before or after the required beginning date.
The IRS maintains a separate RMD page for beneficiaries. The year of death can also carry an unfinished RMD for the original owner. Before moving or retitling the account, the beneficiary should identify the account type, the owner’s age and date of death, and the beneficiary relationship.
Taking an RMD does not require spending it. After tax is addressed, the money can be moved to a taxable savings or investment account, used for planned expenses or directed toward charitable giving. The distribution simply has to leave the tax-deferred account in the required amount and by the required deadline.
IRA owners age 70 and a half or older may be able to use a qualified charitable distribution sent directly from the IRA trustee to an eligible charity. The IRS says a qualifying transfer can count toward an RMD and may be excluded from taxable income, subject to annual limits and other rules. A check written personally after taking a distribution is not the same transaction.
This article was created with AI assistance and reviewed for accuracy against official government sources.
Julian Harrow specializes in taxation, IRS rules, and compliance strategy. His work helps readers navigate complex tax codes, deadlines, and reporting requirements while identifying opportunities for efficiency and risk reduction. At The Daily Overview, Julian breaks down tax-related topics with precision and clarity, making a traditionally dense subject easier to understand.
