Retirees turning 73 in 2026 face a quiet planning decision with an outsized tax consequence. Under SECURE 2.0, the required beginning date for a first required minimum distribution (RMD) is April 1 of the year after the account holder turns 73. That gives someone who reaches 73 in 2026 the option to take their first RMD any time during 2026 — or wait until April 1, 2027. Delaying sounds like free tax deferral. It usually is not.
The One-Time Delay Rule
The IRS allows only the very first RMD to be pushed into the following year, and only up to April 1. Every RMD after that must be taken by December 31 of its own year. Retirees who use the delay must therefore withdraw two full RMDs in 2027: the deferred 2026 amount by April 1, and the regular 2027 amount by December 31. Both distributions land in the same calendar year and are taxed together as ordinary income.
What the Math Looks Like
The Uniform Lifetime Table divisor for age 73 is 26.5, and for age 74 it is 25.5, according to the IRS tables Fidelity and Charles Schwab publish for their clients. On a $600,000 traditional IRA balance at year-end 2025, the 2026 RMD would be roughly $22,642. If the account grew modestly and the year-end 2026 balance were $620,000, the 2027 RMD would be roughly $24,314. Taken in separate years, each falls into whatever bracket the retiree occupies that year. Stacked in 2027, the combined $46,956 lands on top of Social Security, pension income, and any other 2027 earnings — potentially pushing the retiree from the 22% bracket into the 24% or 32% bracket for the year.
The Ripple Effects
The stacked-income year can trigger three additional costs beyond the marginal tax on the RMD itself. First, higher modified adjusted gross income can move a retiree across an IRMAA threshold, adding surcharges to Medicare Part B and Part D premiums two years later, in 2029. Second, up to 85% of Social Security benefits become taxable once provisional income crosses $34,000 for a single filer or $44,000 for a couple, and both thresholds are unindexed. Third, an unusually large distribution can create an underpayment penalty if quarterly estimated taxes were not adjusted.
When Delaying Actually Helps
The April 1 option is worth using in narrow cases: when 2026 income is already unusually high because of a home sale, a large Roth conversion, or a bonus, and 2027 is expected to be a much lower-income year. In that setup, shifting the first RMD into a lower-bracket year can save meaningful tax. For most retirees, though, taking the first RMD during 2026 and every subsequent RMD by December 31 smooths the income curve and avoids the compounding costs above.
The Penalty for Missing the Deadline
If a retiree intends to delay and then misses the April 1, 2027 date by even one day, the IRS treats the missed amount as subject to a 25% excise tax, reduced to 10% if corrected promptly and reported on Form 5329, per IRS guidance. That penalty applies to the shortfall, not the account balance, but it is layered on top of the regular income tax due.
Practical Takeaways
- Model both scenarios before December 31, 2026, using projected 2026 and 2027 taxable income.
- Coordinate any planned Roth conversion so the conversion and first RMD do not compound into the same year.
- Watch the IRMAA lookback: 2027 MAGI sets 2029 Medicare premiums.
- If cash flow is not the constraint, taking the first RMD in the year it is earned is usually the cleaner choice.
Sources: Internal Revenue Service (Retirement Topics — RMDs), Fidelity (First RMD Requirements), Charles Schwab (RMD Reference Guide), FINRA (RMD Deadlines), Vanguard (RMD Rules), Kahn, Litwin, Renza (Turning 73 in 2026).