Delaying the first RMD to April 1 stacks two distributions on one tax return, potentially bundling over $150,000 in income for a $2 million IRA.
Medicare sets 2028 premiums using 2026 income, so a bunched RMD year can trigger IRMAA surcharges costing a married couple nearly $5,770 extra annually.
Taking the first RMD by December 31 instead of April 1 keeps both distributions on separate returns and eliminates the income-stacking problem entirely.
Read More: Learn 7 ways to generate income with a $1,000,000+ portfolio (sponsor)
A retiree turned 73 in 2025 and used the option Congress left him. Instead of taking his first required minimum distribution (RMD) by December 31, he delayed it until April 1, 2026. The second RMD was still due December 31, 2026. Two withdrawals landed on one tax return, and Medicare does not care that the first one "belonged" to 2025. Both dollars became 2026 income. The April deadline bought three months. It did not buy another tax year.
#taking #instead
Medicare sets 2028 premiums using 2026 income, so a bunched RMD year can trigger IRMAA surcharges costing a married couple nearly $5,770 extra annually.
Taking the first RMD by December 31 instead of April 1 keeps both distributions on separate returns and eliminates the income-stacking problem entirely.
Read More: Learn 7 ways to generate income with a $1,000,000+ portfolio (sponsor)
A retiree turned 73 in 2025 and used the option Congress left him. Instead of taking his first required minimum distribution (RMD) by December 31, he delayed it until April 1, 2026. The second RMD was still due December 31, 2026. Two withdrawals landed on one tax return, and Medicare does not care that the first one "belonged" to 2025. Both dollars became 2026 income. The April deadline bought three months. It did not buy another tax year.
#taking #instead
1 day ago
