Retirees who turned 73 in 2024 or 2025 face a tax trap if they chose to delay their first required minimum distribution from an IRA. Pushing that initial withdrawal to the following April means two taxable distributions land in a single calendar year, potentially bumping the account owner into a higher income-tax bracket. The stakes are sharpest for the first wave of savers affected by the SECURE 2.0 age increase, and the IRS has already issued transition relief and updated regulations that reshape how these deadlines work.
Why the April 1 deferral doubles the tax hit in one year
The math is straightforward but easy to overlook. An IRA owner must take a first required minimum distribution for the year they reach age 73, according to the IRS RMD FAQs. That first withdrawal can be delayed until April 1 of the following year. Every subsequent distribution, however, must be completed by December 31. So an account holder who skips the withdrawal in the year they turn 73 and waits until the following spring owes two full distributions in that next calendar year: one by April 1 and the second by December 31.
The IRS spells out the result directly: if no distribution is made in the starting year, required distributions for two years must be made the next year. For someone with a $500,000 traditional IRA balance, the combined payout could easily exceed $35,000 to $40,000, all taxed as ordinary income in a single filing year. That concentration of income can push retirees past thresholds that trigger higher Medicare premiums, reduce eligibility for certain deductions, and increase the taxable share of Social Security benefits.
This timing issue is not limited to IRAs. Taxpayers who hold assets in workplace plans such as 401(k)s or 403(b)s face similar rules, with key distinctions summarized in the IRS comparison chart for IRAs versus defined contribution plans. In each case, delaying the first payout can compress income into a single year, magnifying the tax impact.
SECURE 2.0 timing and IRS transition relief for 1951 births
The double-distribution problem is not new, but SECURE 2.0 created fresh confusion by raising the RMD starting age from 72 to 73. That shift caught people born in 1951 in an awkward gap: they turned 72 in 2023 under the old rule but qualified for the new age-73 threshold under the revised law. The IRS responded with Notice 2023-54, published in Internal Revenue Bulletin 2023-31, granting transition relief for certain 2023 distributions tied specifically to individuals born in 1951.
That relief let affected account owners avoid penalties for missed or late 2023 withdrawals while the agency sorted out the regulatory details. The Treasury and IRS followed up with a regulations package in Internal Revenue Bulletin 2024-33, updating distribution rules under the minimum distribution framework codified in 26 U.S. Code Section 401(a)(9). Those updated rules reflect the SECURE Act and related amendments, clarifying operational details around required beginning dates and distribution timing.
The practical effect is that retirees born in 1951 who relied on transition relief in 2023 may now face a compressed timeline. If they deferred their first distribution into 2024 and then owed a second distribution by December 31 of that same year, the combined tax bill arrived in a single filing season. For those who did not plan ahead with quarterly estimated tax payments, the result could be an underpayment balance due, plus potential interest on the shortfall.
How plan rules and withdrawals interact
The RMD framework applies differently across account types, which can complicate planning for retirees juggling multiple savings vehicles. For example, 401(k) participants who continue working past the standard RMD age may be able to delay distributions from their current employer plan, subject to the plan’s terms and the broader distribution rules for 401(k) accounts. By contrast, traditional IRAs generally require distributions once the owner reaches the applicable RMD age, regardless of employment status.
Because each account has its own required beginning date and calculation method, retirees can unintentionally stack distributions into the same year. A delayed first IRA RMD, a new payout from a former employer’s 401(k), and ongoing withdrawals to cover living expenses can all combine to elevate taxable income. Coordinating the timing and size of these withdrawals is critical to avoid unnecessary bracket creep and surprise tax liabilities.
Planning ahead to avoid the RMD pileup
Retirees approaching age 73 can reduce the risk of a double hit by modeling their expected RMDs several years before the first deadline. Taking the initial distribution in the year it is due, rather than waiting until the following April, spreads income more evenly. Some may also benefit from voluntary withdrawals or Roth conversions in earlier, lower-income years to shrink future required distributions.
For those already locked into a year with two RMDs, careful withholding and estimated tax payments can soften the blow. Adjusting withholding on IRA distributions and coordinating with other sources of income-such as pensions, annuities, and part-time work-can help keep total tax payments aligned with the final liability. Reviewing the interaction with Medicare income-related adjustments and Social Security taxation is equally important, since the knock-on effects of higher reported income can extend beyond the tax return itself.
The bottom line: the option to delay a first RMD until April 1 is not always a favor. For many retirees, especially those nudged into new age thresholds by SECURE 2.0, it simply shifts more income into a single year. Understanding how the rules apply to each type of retirement account and planning withdrawals accordingly can prevent an avoidable spike in taxes just as retirement income becomes most important.
