Bunching RMDs: How to Satisfy Two Years' Distributions Without Doubling Your Tax Bill

You cannot skip an RMD and make it up later. What you can do is defer your very first required minimum distribution to April 1 of the following year, and that single decision lands two full RMDs in the same calendar year. Whether that choice saves you money or costs you depends entirely on what you do with the lead time.

The April 1 Deferral Rule and What It Actually Creates

When you turn 73, the IRS requires your first RMD by April 1 of the year after you turn 73. Every subsequent RMD is due by December 31 of that same year. Defer year one and you owe that distribution by April 1, then your second-year RMD arrives by December 31. Two distributions, both taxable, both in one twelve-month window.

The combined amount can push income into a higher bracket, trigger IRMAA surcharges on Medicare premiums, and reduce deductions that phase out with income.

The Rules That Make This Complicated

Bracket math. For 2025, the 22% bracket for a married couple filing jointly tops out at $201,050 of taxable income. The 24% bracket runs to $383,900. Two combined RMDs from a moderately sized IRA can push a retiree from one tier to the next.

IRMAA. Medicare Part B and Part D surcharges are assessed on income from two years prior. A large income year at 73 shows up in your Medicare costs at 75. The 2025 IRMAA thresholds begin at $106,000 for single filers and $212,000 for married couples. A one-time spike from a doubled RMD can trip that threshold even when ordinary income would not, and it takes two years to clear.

QCDs. If you are charitably inclined and at least 70½, a Qualified Charitable Distribution lets you send up to $108,000 directly from an IRA to a qualified charity in 2025. That amount counts toward your RMD but is excluded from taxable income entirely. A doubled RMD year is precisely when a QCD earns its highest value. This lives in the Harvest stage of a well-built plan. The broader context is in the RMDs and QCDs pillar.

An Illustrative Example

Consider a 73-year-old married retiree with a $1.2 million traditional IRA and ordinary income of roughly $90,000 from Social Security and a small pension. Her first-year RMD would be approximately $43,000. She defers it to April 1 of the following year. Her second RMD comes to approximately $46,000 in that same calendar year.

Combined, the two distributions add $89,000 to her income, pushing her into the 24% bracket. If she directs $50,000 of that combined amount to a qualified charity as a QCD, her taxable income drops by the same amount, the Medicare spike two years out is softened, and she satisfies most of the RMD obligation without increasing adjusted gross income. Taking each RMD on its normal schedule would have kept both years in a lower bracket. The deferral costs money here unless the QCD offset is part of the plan from the start.

Frequently Asked Questions

Can I take one large RMD and split it across two IRAs to reduce the tax hit?

RMDs from traditional IRAs can be aggregated and taken from any one account, but the total still counts as a single year's income. Splitting across accounts changes where the money comes from, not how much you owe.

Does a QCD have to match the RMD amount exactly?

No. A QCD can be any amount up to $108,000 for 2025 and reduces taxable income by whatever you direct to charity, up to that cap. It satisfies the RMD dollar-for-dollar first.

What happens if I miss the April 1 deadline on my first RMD?

The penalty under SECURE 2.0 is 25% of the amount not taken, reduced to 10% if corrected within two years. These are meaningful numbers on a five- or six-figure distribution.

Does deferring the first RMD affect my second-year RMD calculation?

Yes. The second RMD is calculated on the prior December 31 account balance, which will be higher if the first distribution has not yet reduced the account, modestly increasing the second-year obligation.

What to Do Next

What decides this for you is the spread between your income in the deferral year and your projected income in the year you double up. If those two years look meaningfully different, deferral might create real value. If your income is roughly flat, deferring typically costs more than it saves.

Where this goes wrong is the IRMAA lag. Retirees who manage the bracket math correctly in year two still get surprised at 75 when Medicare premiums reflect the income spike they thought they had absorbed. The two-year look-back turns a tidy plan into an unexpected cost.

Worth a conversation if your first RMD year involves other moving pieces: a Roth conversion strategy, a large charitable gift, a change in filing status, or account consolidations. Those interactions change the answer, and they are too coordinated to model without seeing the full picture. Reach out to schedule a planning conversation.

The information provided is for educational purposes only and does not constitute investment, legal, or tax advice. Tax law changes frequently — verify current rules before acting. Consult with qualified professionals for guidance specific to your situation.