First RMD Timing Calculator: the facts

1. The first required distribution is for the year you reach the applicable age (73, or 75 for those born in 1960 or later), but it may be taken as late as April 1 of the following year (§ 401(a)(9)(C)). Every later one is due by December 31 of its year.
2. Delaying the first one does not skip it: the second is still due that same December, so the following year carries two distributions and one year's worth of tax on both.
3. The amount is the prior December 31 balance divided by the Uniform Lifetime Table factor for the age: 26.5 at 73, 25.5 at 74. A delayed first distribution leaves the balance larger, so the second is larger too.
4. Example: $800,000 at 73, with $60,000 of other income and $30,000 of Social Security. Taking each distribution in its own year costs $31,127 of federal tax over the two years; delaying the first into the second year costs $31,881: $754 more.
5. The stacked year can also cross a Medicare tier (the return sets premiums two years later) and pull more of the Social Security benefit into income; in the example the second year lands in tier 2 delayed against tier 1 spread.
6. Delay makes sense in one situation: when the first year's other income is unusually high, from a final salary or a sale, so the distribution would be taxed at a higher rate than the following year's stack.

Educational only, not investment, tax, or legal advice. Results are hypothetical estimates that vary with each use and over time and are not guaranteed accurate or complete. Using this tool creates no client relationship with Considerate Capital, and the site that linked here is not affiliated with it. By using it you agree to the tool terms.