Why Required Minimum Distributions Have Two Deadlines, Not One

The Age Everyone Remembers, and the Detail Many Miss

If you have read anything about required minimum distributions, you have probably seen them summarized with one number: age 73. The IRS says that people generally must begin taking required minimum distributions, commonly called RMDs, from traditional IRAs, SEP IRAs, SIMPLE IRAs, and many workplace retirement plans when they reach that age.

That single age is accurate, but it hides a timing wrinkle that trips up more retirees than you might expect. The rule does not simply say "withdraw the money in the year you turn 73." It gives you a choice about when to take that very first distribution, and the choice you make can have real consequences on your tax return.

The First RMD Can Be Delayed

Here is the part that surprises people. The IRS allows the first RMD to be delayed until April 1 of the year after the year you reach age 73. That later date is known as your required beginning date.

So if you turn 73 during a given year, you have two options for that first withdrawal:

• §Take it by December 31 of the year you turn 73, or
• §Delay it until as late as April 1 of the following year.

At first glance, delaying looks appealing. You get to keep the money invested a little longer, and you push the taxable income into the next year. For some people, that is a reasonable choice. But there is a catch built into the calendar.

Why Delaying Can Stack Two RMDs Into One Year

The delay only applies to your first RMD. Every RMD after that must be taken by December 31 of each year.

That means if you delay your first RMD until April 1, you have not eliminated a withdrawal, you have simply moved it. Your second RMD is still due by December 31 of that same year. The result is that two required withdrawals land in a single calendar year.

Consider a simplified example. Suppose you turn 73 in 2025. You could take your first RMD by December 31, 2025. Or you could delay it until April 1, 2026. If you delay, your first RMD is taken in early 2026, and your second RMD, the one for the 2026 tax year, is still due by December 31, 2026. Both distributions would then fall within 2026 and both would be reported on your 2026 tax return.

Why Two RMDs in One Year Can Matter

RMDs from traditional retirement accounts are generally treated as ordinary income. Doubling up on distributions in a single year increases your taxable income for that year, and that can ripple outward in several ways.

A larger income figure can push part of your income into a higher marginal tax bracket. The United States uses a progressive tax system, meaning income is taxed in layers, and only the dollars above each threshold are taxed at the higher rate. Even so, a big one-year spike in income can mean a noticeably larger tax bill than you would have faced spreading the same withdrawals across two years.

Higher income can also affect other parts of your financial picture. It can influence how much of your Social Security benefit is taxable, and it can affect income-related adjustments to Medicare Part B and Part D premiums, which are based on your income from a prior tax year. A single high-income year can therefore create effects that show up later.

The First Distribution Year and the First Deadline Are Not the Same

This is the heart of the matter. The year you are required to have taken your first distribution, and the deadline by which you must take it, are not necessarily the same year.

When you turn 73, that is your first distribution year. But your first deadline, the required beginning date, can fall in the following year if you choose to delay. Keeping those two ideas separate is the key to understanding RMD timing.

Because of this, it helps to think through the decision before your birthday year ends rather than after. Taking the first RMD in the year you turn 73 keeps one distribution in each tax year and avoids the doubling effect. Delaying may make sense if you expect lower income in the following year or have another specific reason, but it is a decision worth making deliberately rather than by default.

A Few Practical Points to Keep in Mind

Several details are worth carrying forward.

First, the December 31 deadline applies to every RMD after the first one, with no exceptions for delay. Second, the amount of each RMD is calculated based on your account balance at the end of the prior year and IRS life expectancy tables, so the size of a doubled-up year depends on those figures. Third, missing an RMD deadline can trigger a penalty, which makes it worth marking these dates carefully on a calendar.

The broader lesson is simple. RMD timing is not only about a birthday. The distinction between when a distribution belongs and when it is actually due can change how your retirement income stacks up in a given year, and understanding that distinction ahead of time puts the choice in your hands.