{"id":744835,"date":"2026-07-05T16:05:09","date_gmt":"2026-07-05T16:05:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/744835\/"},"modified":"2026-07-05T16:05:09","modified_gmt":"2026-07-05T16:05:09","slug":"5-things-to-know-about-rmds-before-you-turn-73-in-2026","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/744835\/","title":{"rendered":"5 Things to Know About RMDs Before You Turn 73 in 2026"},"content":{"rendered":"

Turning 73 is an important milestone for retirement planning. If you’re turning 73 this year, you’ll need to begin taking required minimum distributions (RMDs) from a traditional retirement account<\/a> like an IRA or 401(k). And if so, now’s the time to familiarize yourself with RMD rules. Here are five key things to know.<\/p>\n

1. RMDs are due by Dec. 31 each year<\/p>\n

There are certain financial deadlines you have to keep track of during the year. April 15, for example, is when taxes are due.<\/p>\n

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Image source: Getty Images.<\/p>\n

For RMD purposes, the key date to keep in mind is Dec. 31. That’s when your RMD is due each year.<\/p>\n

However, you don’t actually want to wait until the last day of the year to initiate your RMD. If you hit a snag, you may not end up taking that withdrawal on time. Plan ahead for your RMD so you don’t run into trouble.<\/p>\n

2. You can defer your first RMD — but that may not be prudent<\/p>\n

Although RMDs are typically due on Dec. 31, you’re allowed to defer your first one due to April 1 of the year after you turn 73. So if you’re turning 73 this summer, you can push off that mandatory withdrawal to 2027 and avoid a tax bill this year.<\/p>\n

That may seem like a good idea at first. But that strategy could also backfire.<\/p>\n

If you defer your first RMD to April, you’ll have to take two mandatory withdrawals in 2027. That could leave you with a gigantic tax bill on your hands.<\/p>\n

3. Missing an RMD can be expensive<\/p>\n

If you think blowing off an RMD isn’t a big deal, you’re mistaken. The IRS can assess a 25% penalty for missed RMDs. So if you’re looking at a $10,000 withdrawal, failing to take it could mean losing $2,500, just like that.<\/p>\n

Now the good news is that if you miss an RMD but correct that error within two years, you can generally get your 25% penalty whittled down to 10%. But that could still end up being a lot of money, depending on your RMD amount.<\/p>\n

A better idea? Set up automatic RMDs so you don’t forget to take yours. You can typically arrange to have that money come out of your IRA<\/a> or 401(k) on a monthly, quarterly, or once-a-year basis, depending on the schedule that works best for you.<\/p>\n

4. RMDs can impact more than just your tax bill<\/p>\n

One reason retirees often moan about having to take RMDs is that those withdrawals are taxable. But that’s not all.<\/p>\n

If your RMD increases your taxable income substantially, you could be pushed into a higher bracket. You could also end up having to pay taxes on your Social Security<\/a> benefits. And your Medicare premiums could get more expensive, because a huge increase in your income could subject you to surcharges on Parts B and D known as IRMAAs, or income-related monthly adjustment amounts.<\/p>\n

5. A Roth conversion could help you minimize or even avoid RMDs<\/p>\n

If you’re already dreading RMDs, it may not be too late to do a Roth conversion. With a Roth conversion, you move funds from a traditional IRA or 401(k) to a Roth IRA<\/a>.<\/p>\n

Granted, you’ll need to consider the tax implications, because if you convert a huge sum of money at once, that alone could trigger a giant tax bill that causes you to owe the IRS a lot of money as well as face the consequences above (taxes on Social Security benefits and higher Medicare costs). But in some cases, a last-minute Roth conversion or partial conversion could make sense.<\/p>\n

The more prepared you are for RMDs, the less financial pain they might cause. Make sure to understand the rules inside and out if you’ll be facing RMDs later this year so you don’t hit any snags.<\/p>\n","protected":false},"excerpt":{"rendered":"Turning 73 is an important milestone for retirement planning. If you’re turning 73 this year, you’ll need to…\n","protected":false},"author":2,"featured_media":744836,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[28,147,530],"class_list":["post-744835","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-personal-finance","tag-personalfinance"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/744835","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=744835"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/744835\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/744836"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=744835"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=744835"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=744835"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}