Why RMD Timing Belongs in Your Estate Planning Conversation

Estate Planning Is More Than Documents

When most people think about estate planning, they picture paperwork: a will, a trust, a list of beneficiaries, maybe a power of attorney. Those documents are essential. But they tell only part of the story. The way money actually moves out of your retirement accounts during your lifetime—and the timing of those withdrawals—can shape the size of your estate, the taxes involved, and what your family expects to receive.

One of the most overlooked pieces of that puzzle is the required minimum distribution, or RMD. These are the minimum amounts the IRS requires you to withdraw from certain retirement accounts each year once you reach a specific age. Because RMDs directly affect account balances and tax bills, they belong in any thorough conversation about wills and trusts, not just in a separate discussion about income.

What a Required Minimum Distribution Actually Is

According to IRS guidance, an RMD is the minimum amount you must withdraw from your retirement accounts each year. The rule exists because accounts like traditional IRAs and 401(k)s are funded with pre-tax dollars. You received a tax break when you contributed, and the government eventually wants its share. RMDs are the mechanism that ensures those tax-deferred dollars do not sit untouched indefinitely.

Under current rules, withdrawals generally must begin when the account owner reaches age 73. That is the starting line. Once you cross it, an RMD is due for each applicable account every year for the rest of your life. The amount is calculated based on your account balance and your life expectancy, so it changes from year to year.

The First-Year Rule That Trips People Up

Here is the wrinkle that catches many people by surprise. IRS RMD FAQs explain that your very first required distribution can be delayed until April 1 of the year after you turn 73. That sounds like a helpful bit of breathing room, and it can be. But it comes with a catch that is easy to miss.

Even if you delay that first withdrawal to April 1, your second RMD is still due by December 31 of that same year. In other words, if you push your first distribution into the following year, you can end up taking two required withdrawals in a single calendar year.

Consider a simplified example. Suppose you turn 73 in 2024. You could take your first RMD by December 31, 2024, or delay it until April 1, 2025. If you choose the delay, your first RMD lands in early 2025—and your second RMD, for the 2025 tax year, is still due by December 31, 2025. Both distributions now fall within 2025.

Why Two Withdrawals in One Year Matters

Doubling up on distributions in a single year is not automatically a mistake, but it can have real consequences. Because withdrawals from traditional retirement accounts are generally treated as taxable income, stacking two RMDs into one year can push more of your income into a higher tax bracket for that year. It may also affect other figures tied to income, such as certain thresholds and surcharges that depend on how much you report.

The alternative—taking that first RMD in the year you turn 73—spreads the two distributions across two separate tax years. Neither choice is universally better. The right approach depends on your overall income picture, and that is precisely why the decision deserves attention rather than being left to default.

Where This Connects to Wills and Trusts

Retirement assets do not move in a vacuum. The balance in an IRA or 401(k) at any given moment reflects both market performance and the withdrawals you have taken. When you are planning how your estate will pass to heirs, the timing of those withdrawals quietly shapes the numbers.

Several practical points flow from this connection:

• §Account balances shift with distributions. Each RMD reduces the balance in the account. If family members are anticipating a particular inheritance from a retirement account, the ongoing withdrawals change that expectation over time.

• §Taxes affect what actually transfers. Money pulled out during your lifetime is taxed as income to you. Understanding that flow helps set realistic expectations about the after-tax value of what remains.

• §Transition periods can be delicate. During the stretch when an estate is being settled, family members may hold assumptions about how and when assets will flow. Clear understanding of distribution rules reduces confusion during an already stressful time.

Bringing Timing Into the Bigger Picture

The broader lesson is that estate planning and retirement income planning are not separate conversations. They are two views of the same set of assets. A will names who receives what, but RMD rules govern how much is being drawn down along the way and what tax consequences attach to that process.

By understanding that RMDs begin at age 73, that the first one can be delayed to April 1 of the following year, and that delaying it may create two taxable withdrawals in one year, you gain a clearer view of how your retirement accounts behave over time. That clarity is valuable not only for your own planning but for the family members who will one day navigate the transition of those assets.