Taking Your First RMD? Here's What You Need to Know

Should You Wait Until April 1 to Take Your First Required Minimum Distribution?

The IRS gives you extra time to take your first required minimum distribution. It sounds like a gift. But using that extra time can put two required distributions on the same tax return. In one illustrative example we walk through in this video, that adds up to $82,000 of required withdrawals in a single year.

Taking your first required minimum distribution marks a new phase of retirement. After decades of saving, you're now required to begin withdrawing money from certain retirement accounts. In this video, we walk through when RMDs start, your first-year deadline, how the number is calculated, and what changes for Roth conversions, so you know what to think through before you take that first distribution.

Required minimum distributions touch your taxes, Medicare premiums, and how much of your Social Security is taxed all at once. You may also find our video on the top 10 RMD mistakes helpful as you plan your first year.

When Do Required Minimum Distributions Start?

Under current law, required minimum distributions generally begin at age 73 for people born from 1951 through 1959. If you were born in 1960 or later, they begin at age 75.

Traditional IRAs, including SEP and SIMPLE IRAs, follow that age even if you're still working. Your 401(k) may be different. If you're still working, you may be able to delay RMDs from your current employer's 401(k) until you retire, as long as the plan allows it and you're not a 5% owner under IRS rules.

Roth IRAs and Roth 401(k)s don't require lifetime RMDs for the original owner. So step one is knowing which of your accounts actually require distributions.

What Is the Deadline for Your First RMD?

Normally, a required minimum distribution has to come out by December 31 each year. Your first one gets special treatment: you generally have until April 1 of the following year.

For example, if you turn 73 in 2026, you can take your 2026 RMD anytime in 2026, or wait as late as April 1, 2027. Every RMD after the first one is due by December 31.

Missing an RMD deadline can trigger an excise tax of 25% of the shortfall, reduced to 10% if corrected within the applicable correction window. The IRS may also waive the tax when the shortfall resulted from reasonable error and appropriate corrective steps are taken. But just because you can wait doesn't mean you should. The extra time comes with a catch.

How Delaying Your First RMD Can Put Two RMDs in One Tax Year

If you wait until 2027 to take your first RMD, your second RMD is still due by December 31, 2027. Now you have two RMDs landing in the same tax year.

Let's say your first RMD is $40,000 and your second is $42,000. If you take the first one in 2026, you'd have $40,000 of RMD income in 2026 and $42,000 in 2027. If you delay the first one until 2027, you could have $82,000 of RMD income on your 2027 return and none in 2026.

That's $82,000 in required withdrawals, not an $82,000 tax bill. But depending on your other income, that bunching could push you into a higher tax bracket, make more of your Social Security taxable, and raise your Medicare premiums two years later.

Illustrative example only. Actual RMD amounts and tax results depend on account balances, other income, and individual circumstances. Consult your tax advisor.

That doesn't mean delaying is always wrong. If the first year is an unusually high-income year, say it's your last year of paychecks, pushing that first RMD into the following year might actually make sense. The point is to compare both years before you decide.

How Is Your First RMD Calculated?

Your RMD is your account balance on December 31 of the prior year, divided by an IRS life expectancy factor. For a 2026 first RMD, that means your December 31, 2025 balance. Most IRA owners use the IRS Uniform Lifetime Table, where the factor at age 73 is 26.5.

For example, a $1,060,000 IRA balance divided by 26.5 produces a first RMD of $40,000.

Illustrative example only. The factor shown is from the IRS Uniform Lifetime Table for age 73. Individual circumstances vary. Consult your tax advisor.

There's one exception. If your spouse is your sole beneficiary and is more than 10 years younger, a different table applies and your RMD is smaller.

If you have multiple traditional IRAs, you generally calculate the RMD for each one, but you can take the combined amount from one or more of those IRAs. 401(k)s work differently. Each plan's RMD generally has to come from that plan.

How Do Required Minimum Distributions Affect Roth Conversions?

Your RMD can't be converted to a Roth. And the first dollars you take out of an IRA in an RMD year count toward your RMD. So if you want to do a Roth conversion that year, the RMD has to come out first. Then you can convert additional dollars on top of it.

That's why the year RMDs start changes your tax planning. You're no longer deciding entirely on your own how much IRA income to take. The IRS has now set a minimum.

For a deeper look at conversion timing and taxes, explore our complete guide to Roth conversions.

The Bigger Picture: Your First RMD Starts a New Phase of Your Tax Plan

Don't just wait for your custodian to send you a number. Know when your RMDs begin. Understand your first-year deadline. Decide whether this year or next year makes more sense. And look at how the RMD fits with the rest of your retirement income.

That first RMD isn't just another withdrawal. It's the start of a new phase of your retirement tax plan.

If you have a large IRA, our video on what to do before RMDs start explores the planning opportunities available before required withdrawals begin.

Coordinating required minimum distributions with Social Security, Medicare, and Roth conversions is an important part of retirement tax planning. Looking at these decisions together can help you evaluate their impact across multiple tax years.