Your First RMD: The April 1 Trap That Can Double Your Taxable Income

Deferring your first required minimum distribution to the April 1 deadline does not ease you into retirement income. It stacks two fully taxable distributions into one calendar year, which can push you into a higher bracket, trigger IRMAA surcharges on Medicare premiums, and make more of your Social Security taxable at once. Taking that first distribution in the year you turn 73 is almost always cheaper.

Why April 1 Produces Two Distributions

Under current law, you must begin RMDs from traditional IRAs and most employer plans by April 1 of the year following the year you turn 73. That is the required beginning date. The catch: your second RMD is always due by December 31 of that same year.

Turn 73 in 2025 and your first RMD covers the 2025 distribution year. Wait until April 1, 2026, and you still owe your 2026 RMD by December 31, 2026. Two distributions, one tax return. For many pre-retirees I work with, that decision quietly adds $30,000 to $60,000 of ordinary income to a year nobody budgeted for it.

Aggregation Rules and the Penalty

IRAs aggregate: you calculate each IRA's RMD separately but can satisfy the total from any one or any combination of them. Employer plans like 401(k)s do not aggregate. Each requires its own distribution from that specific account.

If you miss an RMD or fall short, the penalty under current law is 25% of the shortfall. That drops to 10% if you correct the mistake in a timely manner, generally within two years. The IRS also has a history of waiving the penalty entirely when the mistake was reasonable and the distribution is taken promptly. Missing an RMD is fixable. Letting it linger is not.

Pairing the First RMD With a QCD

If you are charitably inclined and at least 70½, a qualified charitable distribution (QCD) belongs in the first-RMD conversation. In 2026, you can direct up to $108,000 per person from an IRA to a qualified charity. That amount counts toward your RMD but is excluded from adjusted gross income entirely.

An illustrative case: a 73-year-old with a $1.2 million IRA has a first-year RMD of roughly $45,000, and already gives $20,000 annually to her church. Routing that $20,000 as a QCD leaves $25,000 taxable and holds her AGI down, which matters for IRMAA thresholds and bracket management. This is the Harvest stage of the Sporos Doctrine, where withdrawal sequence does as much work as the portfolio.

The Takeaway

What decides whether deferral costs you anything is what else already lands in the following year. If that year is quiet, doubling up may be survivable. If it holds a pension start, a property sale, or an equity vest, stacking two RMDs on top is the expensive choice.

The subtler problem is lag. IRMAA is set from income reported two years earlier, so people absorb the double-distribution tax bill, move on, and meet higher Medicare premiums long after the decision that caused it.

Which year to take that first distribution, and whether a QCD should absorb part of it, is worth a conversation before December 31.

The information provided is for educational purposes only and does not constitute investment, legal, or tax advice. Consult with qualified professionals for guidance specific to your situation.