RMD Deadlines Explained: The First-Year Delay Can Create a Tax Bunching Problem

Required minimum distributions generally begin at age 73, and the first RMD may be delayed until April 1 of the following year. Later annual RMDs are due by December 31. Delaying the first distribution can put the first and next year's required withdrawals into the same tax year.

The deadline question comes after an account question: which of your accounts has an RMD requirement, and under which rules? Traditional retirement savings, workplace plans, Roth accounts, and inherited accounts do not all follow identical treatment. Confirm the rule for each account rather than applying an age reminder to the whole household.

Identify accounts before deciding what is due#

Traditional IRAs and many tax-deferred workplace retirement plans generally require distributions once the applicable starting rules are met. Certain workplace plans may allow a later start while you remain employed, subject to plan terms and ownership rules. That exception does not simply extend to every IRA you own.

Roth IRAs and designated Roth workplace accounts generally do not require lifetime RMDs for the original owner. Inherited accounts need their own review even when the original account was Roth.

Make an account inventory with the institution, account type, owner or beneficiary status, and administrator's RMD contact. Include old workplace plans and accounts that received transfers. A small forgotten account can still create a compliance issue.

For background on contribution types, see traditional and Roth workplace accounts. For an actual RMD determination, use the IRS guidance and the administrator's explanation of your specific account.

Put the first and recurring deadlines side by side#

If the general age rule applies and you turn 73 during 2026, your first RMD is for 2026. You can take it during that year or delay it until April 1, 2027. The RMD for 2027 is still due by December 31, 2027.

Those withdrawals satisfy different years' requirements even when both occur during 2027. Do not assume the April payment replaces the December obligation. Label each withdrawal with the requirement it is intended to satisfy.

Custodians may need processing time before the formal deadline. Ask when the request must arrive and what confirms completion. A submitted form or a scheduled transfer is not the same as a distribution that has been processed correctly.

Test the first-year delay against the whole tax return#

Delaying can be attractive if you expect the following year to have lower income. But the first and next required withdrawals may then be taxable in the same year, increasing income more than anticipated. Compare the combined result before making the timing choice.

Consider wages, pensions, investment income, Social Security taxation, and income-based health premium effects where relevant. Do not estimate the decision from the RMD alone. A tax professional can model the alternatives using the rest of your return.

You can also take the first RMD during the initial year instead of using the extension. That may spread income between years, although it is not automatically better for every household. The extension is an option, not a recommendation.

Ask for a calculation you can reconcile#

An RMD calculation generally uses the applicable prior year-end account balance and an IRS life-expectancy factor. The relevant table and adjustments depend on the circumstances. Do not reuse a friend's factor or last year's withdrawal amount without checking.

Ask each custodian what balance, table, and distribution year it used. Note whether transfers, inherited status, or other unusual facts require an adjustment. Review missing or conflicting statements before authorizing a withdrawal based on an incomplete balance.

Some IRA RMDs may be calculated separately and then satisfied in total from permitted IRA accounts. Workplace plans and inherited accounts can have different aggregation restrictions. You cannot freely take the household's entire requirement from whichever account is most convenient.

Keep the account-by-account calculation even when permitted aggregation is used. It shows how the combined withdrawal meets the separate requirements and makes it easier to answer a later question from your preparer.

Choose the assets and withholding deliberately#

An RMD does not necessarily require selling the same investment in every account. Ask the custodian about cash availability and permitted distribution methods. An in-kind distribution, where available, still requires careful valuation and tax reporting.

Review the portfolio after the withdrawal so the remaining allocation still suits your needs. Retirement account priorities provide broader context, but they do not override distribution requirements for an account already subject to RMDs.

Decide how to cover income tax rather than treating the gross withdrawal as entirely spendable. Ask the payer about withholding and use the withholding overview to understand the general distinction between payments and final tax liability. Different payment types can require different withholding forms.

Correct a shortfall promptly rather than waiting for filing season#

Missing an RMD can trigger a 25% excise tax on the shortfall. The rate can be reduced to 10% if corrected within the applicable time. Do not assume a correction period is unlimited or that taking a later distribution automatically resolves the reporting.

Contact the custodian and a tax professional as soon as you discover a missed or insufficient withdrawal. Determine the actual shortfall, complete the required correction, and review Form 5329 reporting. A reasonable-error waiver may be available under the rules, but it is not automatic.

Document what happened, when you discovered it, how it was corrected, and what you changed to prevent recurrence. Keep confirmation of the corrective withdrawal and any professional guidance. Never assume the custodian files every form required on your personal return.

Leave a record for next year's review#

Save the calculation, distribution confirmations, withholding election, and remaining deadlines together. Include the task in your year-end tax review, even if automatic payments are already set up. Check that each account's requirement is satisfied before the processing cutoff.

This article is general information, not tax or legal advice. Use the IRS RMD guidance and qualified professional help for inherited accounts, exceptions, aggregation questions, or missed distributions.