Turning 73 This Year? The Quiet Trap Behind the April 1st RMD Deadline

If you turn 73 in 2026, the IRS will expect you to begin taking Required Minimum Distributions (RMDs) from your traditional retirement accounts. Most people know that. What surprises a lot of people approaching this milestone is a quieter detail — the April 1st deadline that's designed to give you more time, but can quietly cost you more in taxes if you use it.

The rule, in plain language

Under current rules, your first RMD is due by April 1st of the year after you turn 73. Every RMD after that one is due by December 31st of that same year.

On paper, the April 1st grace period sounds helpful. In practice, it means you can wait — and end up taking two RMDs in the same calendar year. The first one (for the year you turned 73) and the second one (for the current year). Two distributions, one tax return.

Why it matters

Stacking two RMDs into one tax year can push more of your income into a higher bracket than it would have been if you'd simply taken the first RMD on time. It can also affect Medicare premiums, since IRMAA surcharges are based on income from two years prior. For couples filing jointly, the effect can be amplified.

This isn't a reason to panic. It's a reason to plan.

What the SECURE 2.0 changes did — and didn't — do

The SECURE 2.0 Act adjusted a few pieces of the RMD landscape. A handful of the most relevant for families approaching this milestone:

• The starting age moved up to 73 for individuals born between 1951 and 1959, and to 75 for those born in 1960 or later.
• The penalty for missing an RMD was lowered from 50% to 25%, and can drop to 10% if the shortfall is corrected within two years.
• Roth 401(k) and Roth 403(b) accounts no longer require lifetime RMDs.
• Surviving spouses who inherit a retirement account have more flexibility in when and how distributions begin.

What didn't change: the calendar. The April 1st deadline still exists, and the math behind taking two RMDs in one year still applies.

A few questions worth asking this year

• Will I be in a lower tax bracket this year or next — and which year would a larger distribution hit harder?
• Could a partial Roth conversion in a quieter income year reduce the size of future RMDs?
• Do I have appreciated assets, qualified charitable distributions, or other tools that could shape the timing of when income is recognized?
• Have I already had withholding taken out, or do I need to plan for the tax bill separately?

The bigger frame

RMDs are one of the more mechanical parts of retirement income planning — a rule, a date, a percentage. The harder part is fitting them into the rest of the picture: Social Security timing, Medicare premiums, charitable goals, and what the next ten years are actually for.

That's where a steady, longer conversation tends to matter more than any single calculation. The goal isn't to optimize one tax year. It's to keep the broader plan working the way you intended it to.

If you're turning 73 in 2026 — or watching a parent navigate this — it's a reasonable year to sit down and look at the next several together.

Ready to think through your own RMD picture? Start with a conversation — no obligation, no pressure.

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This article is intended for educational purposes and is not personalized tax or investment advice. Please consult your tax professional regarding your specific situation.

Securities offered through LPL Financial, Member FINRA/SIPC.