Retirees Who Turned 73 This Year Can Push Their First RMD to April 1. The Ones Who Do Take Two in 2027, and Some Pay a Medicare Bracket for It

Retirees Who Turned 73 This Year Can Push Their First RMD to April 1. The Ones Who Do Take Two in 2027, and Some Pay a Medicare Bracket for It

David Beren

Sat, September 19, 2026 at 12:44 AM GMT+3 5 min read

Quick Read

• Retirees turning 73 in 2026 who defer their first RMD to April 2027 must also take their 2027 RMD by December 31, 2027, stacking two taxable distributions in one year.

• Two RMDs in 2027 can push singles past the $106K or couples past the $211K threshold into the 24% bracket and maximize Social Security taxation to 85%.

• A high 2027 AGI triggers IRMAA two years later in 2029, jumping Medicare Part B premiums from $203 to $284 per month for singles exceeding $109,000.

• Two retirees, same $1 million, same 4% rule, buy one finished with $1.4 million, the other hit $0 in 12 years. Our free reader guide explains the flaw that separated them, and the income-first method built to avoid it.

Turning 73 in 2026 comes with a one-time choice. Retirees who reach their required minimum distribution age this year can take that first withdrawal now, or push it to April 1 of 2027. The deferral shrinks the 2026 tax bill, but a second RMD is still due by December 31, 2027. Two years of mandatory income land in a single tax year, triggering thresholds that cause damage that outlasts the distributions themselves.

How the Two-Distribution Year Actually Forms

A retiree who reaches the RMD age of 73 in 2026 has a required beginning date of April 1, 2027, for the 2026 distribution. Every subsequent RMD must be taken by December 31 of its own year. Defer the first, and both distributions land in 2027. Take the first in 2026, and each year stands alone. Deferral only changes which tax year absorbs the income.

Why Stacking Inflates More Than the Tax Bill

The doubled-up year raises adjusted gross income, and federal thresholds react to that AGI. Under the 2026 schedule, a single filer moves from the 22% bracket into 24% at $105,700, and a married couple filing jointly crosses at $211,400. Stacking two RMDs can push the top slice of the second into a marginal rate neither would have faced alone.

The 4% Rule is Broken, Built On A World That No Longer Exists

Every retiree knows about the 4% rule, but it frames retirement as a slow liquidation and still causes retirees with seven-figure accounts to agonize over a dinner out.

There's a different way to run the math that makes more sense today. Build an income floor — dividends, interest, and Social Security that cover your essential bills every month — and you never have to sell shares into a down market just to pay them.

Our free reader guide, The 4% Rule Is Broken, walks through it in about 15 minutes. Access the report here.

Social Security taxation is the second lever, and once combined income clears $25,000 for singles and $32,000 for joint filers, more of the benefit becomes taxable. Above $34,000 and $44,000, up to 85% is included in AGI. A doubled-up RMD year maximizes that percentage.

Medicare Surcharge Arrives Two Years Late

IRMAA uses a two-year lookback, so 2027 AGI drives Medicare premiums in 2029. The 2026 brackets show the narrow runway: a single filer with modified AGI at or below $109,000, or a couple at or below $218,000, pays the standard Part B premium of $202.90.

One dollar over sends the single filer to $284.10. The next tier at $137,000 single or $274,000 joint lifts the total to $405.80. These are cliffs. Part D carries its own surcharge starting at $14.50 per month and climbing to $91.00 at the top. Long-term capital gains and the 3.8% net investment income tax react to the same inflated AGI, converting a 15% gains rate into 20% and dragging investment income into the surtax.

Choice Is Irreversible After December 31

Once 2026 closes, the deferral is permanent. There is no retroactive first RMD or amended return. The right question is which of the two years has more room beneath the next bracket, the next IRMAA cliff, and the 85% Social Security ceiling. That framing, defusing a large pre-tax balance years before the first required withdrawal, is the whole subject of a free guide we put together on the first-year tax bomb.

When Deferral Genuinely Helps, and Ways to Soften the Blow

Deferral works when 2026 income is unusually high, and 2027 will be lower: a partial year of wages, a property sale, or a one-time payout. A qualified charitable distribution from an IRA at age 70½ up to $108,000 per person satisfies an RMD without adding to AGI. A Roth conversion cannot substitute for an RMD. IRAs may be aggregated so one account covers the total, while 401(k) plans generally must be distributed separately. Missing an RMD triggers a 25% excise tax, reduced to 10% if you correct it promptly.

The deadline for the 2026 decision is December 31, 2026. A side-by-side projection of AGI in 2026 and 2027 under both scenarios, marking the next bracket, IRMAA threshold, and Social Security inclusion line on each, shows whichever year has more room beneath those lines to carry the first distribution.

Before Your Next Withdrawal, Run One Number ( It's Not The 4% Rule Everyone Knows)

Take your essential monthly expenses and subtract your guaranteed income — Social Security, plus any pension. What's left is your income gap, and how you close it determines whether retirement runs on share sales or on a paycheck your portfolio writes you every month. Our free reader guide, The 4% Rule Is Broken, shows exactly how to close that gap with portfolio income: a worked example (one retiree needed about $480,000 in income-producing assets to cover his essentials for good), an eight-point conversion checklist, and the 20-year numbers comparing dividends to withdrawals. It's free and takes about 15 minutes to read. Get the guide here before you take your next withdrawal.

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