Key Takeaways
- Anyone who turns 73 in 2026 can put off the first required minimum distribution until April 1, 2027, but the 2027 distribution is still due by Dec. 31, 2027.
- A hypothetical retiree with $800,000 in a traditional IRA who waits would have to withdraw $61,561 in 2027 if the balance holds.
- That stacks two years of required income on one tax return.
- For most people turning 73 this year, taking the first distribution before Dec. 31, 2026 is the cleaner choice.
Picture a hypothetical retiree who turns 73 this year with $800,000 in a traditional IRA. The IRS gives them a break on the first required minimum distribution: it can wait until April 1, 2027.
But there’s a catch:
Take that break, and 2027 brings two required withdrawals. They add up to $61,561.
The first deadline is the only soft one
The IRS says withdrawals from traditional IRAs and workplace plans must start at 73. The first one is due by April 1 of the year after you turn 73. Every one after that is due by Dec. 31.
So the grace period happens once. For someone turning 73 in 2026, the April 1, 2027 deadline covers the 2026 distribution. The 2027 distribution is due by Dec. 31, 2027, on the normal schedule. Wait until spring, and both come out in the same calendar year.
The size of each withdrawal comes from the IRS’s Uniform Lifetime Table in Publication 590-B. You divide the account’s balance at the end of the previous year by the table’s figure for your age this year. The figure is 26.5 at 73 and 25.5 at 74. That table applies to IRA owners unless their sole beneficiary is a spouse more than 10 years younger.
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The math on $800,000
Assume the IRA sits at $800,000 at the end of 2025 and again at the end of 2026.
- The 2026 distribution (age 73): $800,000 ÷ 26.5 = $30,188.68
- The 2027 distribution (age 74): $800,000 ÷ 25.5 = $31,372.55
- Both in 2027: $30,188.68 + $31,372.55 = $61,561.23
Here are the two paths side by side:
| Metric | Withdrawn in 2026 | Withdrawn in 2027 |
|---|---|---|
| Take the first distribution by Dec. 31, 2026 | $30,189 | $31,373 |
| Wait until April 1, 2027 | $0 | $61,561 |
Waiting doesn’t shrink the total the IRS requires. Instead, it moves all of it into one year.
That matters because both withdrawals go on the 2027 tax return. Doubling the required income in a single year can push part of it into a higher bracket than either withdrawal would reach on its own. And 2027 also has to absorb whatever else the retiree earns that year: Social Security, a pension, interest, or gains from selling investments.
(Of course, a real account won’t sit still at $800,000, and neither will these figures. Each distribution rests on the balance at the end of the year before, so a strong 2026 raises the 2027 figure, and a weak one lowers it.)
When waiting makes sense
The delay can still be the right call in one situation: 2026 is a high-income year and 2027 will be noticeably leaner. That could be someone who drew a final paycheck in early 2026, or who sold a big position this year. If so, moving the first withdrawal into a quieter year can cost less in tax, even with two withdrawals stacked there.
For everyone else, the choice runs the other way. The federal options are simple:
- Take the 2026 distribution by Dec. 31, 2026. One withdrawal lands on each year’s return, and the April deadline never comes into play.
- Wait until April 1, 2027. The 2026 distribution comes out by April 1, the 2027 distribution by Dec. 31, and both are taxed in 2027.
Dec. 31 is about nine weeks away, so the decision has to be made soon. It’s worth running both years’ expected income before the holidays, since a retiree who misses the year-end deadline has chosen the stacked path by default.
My take: for most people turning 73 this year, the April grace period is a trap worth skipping. Unless 2026 is clearly the bigger income year, take the first withdrawal before Dec. 31.
The required share keeps climbing
This isn’t a one-time issue. The table’s figure drops every year, so the share of the account the IRS requires rises with it. At 75 the figure is 24.6, and on the same $800,000 that works out to $32,520 ($800,000 ÷ 24.6).
The IRS’s table and its deadlines can change, and so can the retiree’s income from one year to the next. Either one could flip the answer for a particular household. But the math behind the April delay doesn’t change: it takes two years of required income and puts them on one return.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
