Turn 73 This Year, Wait Until April 1 to Take Your First RMD, and You Owe Two in 2027. On a $2 Million IRA That’s About $154,000 on One Return, a Single Retiree Lands Three Medicare Surcharge Tiers Up in 2029, and the December 31 Fix Costs Nothing
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Consider a single retiree born in 1953 who opens a letter from Social Security in late 2028. Her Medicare premium for 2029 has rose by hundreds of dollars a month. The cause is a deadline the IRS puts in writing.
Two years earlier, she waited until April 1 to take her first required minimum distribution (RMD). The law allows that delay, but it put two RMDs on one tax return. With a $2 million IRA, the two together come to about $154,000. Here’s how that happens, and why taking the first one before December 31 costs her nothing.
April 1 Grace Period Puts Two RMDs on Your 2027 Return
Anyone born in 1953 reaches RMD age 73 in 2026, under 26 U.S.C. § 401(a)(9)(C)(v)(I). The first RMD covers 2026, but you can push it to April 1, 2027.
That extra time comes with a catch. IRS Publication 17 says the RMD for any year after the year you turn 73 “must be made by December 31 of that later year.” If you delay the 2026 RMD, the 2027 RMD is still due by December 31, 2027. Both show up with your 2027 filing.
How a $2 Million IRA Becomes a $154,000 Tax Year
Assume a $2 million balance on December 31, 2025, and no growth to keep the math clean. The Uniform Lifetime Table divisor at 73 is 26.5, so the 2026 RMD is about $75,472. At 74, the divisor falls to 25.5.
The delay also makes the second RMD bigger. The 2027 RMD is figured on the December 31, 2026 balance. If the first RMD is still in the account that day, the full $2 million counts, and the 2027 RMD comes to about $78,431. Take the first RMD in 2026 and the 2027 RMD falls to about $75,472, which is $2,960 less.
With the delay, the 2027 return shows about $153,903 of IRA income. Add $34,000 of Social Security. At that income, 85% of it, or $28,900, is taxable. Her modified adjusted gross income (MAGI) comes to about $182,803.
| Path | 2026 IRA income | 2027 IRA income | 2027 MAGI | 2029 monthly Part B (2026 rates) |
|---|---|---|---|---|
| First RMD by Dec. 31, 2026 | $75,472 | $75,472 | $104,372 | $202.90 |
| Wait until April 1, 2027 | $0 | $153,903 | $182,803 | $527.50 |
Medicare Surcharge Jumps Three Tiers in 2029
Social Security sets IRMAA (the income-related monthly adjustment amount) from “the most recent federal tax return the IRS provides to us,” which is generally the return from two years back. So 2029 premiums depend on the 2027 return.
Using the 2026 brackets as a stand-in, a single taxpayer with MAGI over $171,000 and up to $205,000 pays $527.50 a month for Part B instead of $202.90, plus a $60.40 monthly Part D surcharge. That is the third surcharge level, and it adds up to about $4,620 for the year. If she takes the first RMD on time, her MAGI remains under the $109,000 threshold.
These thresholds work as cliffs. Going one dollar over a line increases the premium for the whole year.
Her income tax goes up too. Under 2026 brackets, after the $16,100 standard deduction, the 2027 return crosses the 24% line at $105,700. Only the dollars above that line pay 24%. On the on-time path, her income stays in the 22% bracket both years.
Why Form SSA-44 Can’t Undo Bunched RMDs
You can ask Social Security to lower IRMAA after a life-changing event, which it lists as “marriage, divorce, the death of a spouse, loss of income, and an employer settlement payment.” Taking two RMDs in one year by choice doesn’t appear on that list, so the 2029 surcharge remains.
Three December 31 Moves That Cost Nothing Extra
- Take the 2026 RMD by December 31, 2026. You owe the money either way. Taking it this year spreads the income across two years and reduces the 2027 RMD.
- Direct part of it to charity as a qualified charitable distribution (QCD). A QCD helps meet your RMD and stays out of AGI, so it never reaches the IRMAA calculation. An annual QCD limit applies.
- Don’t miss the deadline. A missed RMD sets off a 25% penalty on the untaken amount. The tax falls to 10% if you fix it within the correction window.
The April delay can still make sense for someone whose 2026 income is particularly high, such as a final paycheck or a large capital gain, and whose 2027 income will be lower. For most single retirees with large IRAs, it just pushes two years of income into one, and Medicare bills for it two years later (we wrote a free guide on defusing this first-year RMD tax hit years before it lands, here). Get a professional to run your own numbers before December 31.
Contact [email protected] for any questions or corrections.
Vilma Rios is a tax professional, tax researcher, and financial writer with more than 15 years of experience in tax and accounting. Her work spans federal tax research, financial journalism, retirement planning, investment taxation, capital gains, inherited assets, and tax education. She specializes in translating complex tax and financial topics into clear, practical information that helps individuals, families, retirees, and investors make informed decisions.
She has presented tax information through webinars, including Spanish-language tax education, and has appeared on Telemundo 47 discussing tax topics and helping viewers understand important tax-filing requirements.
Her experience also includes tax and accounting work, tax research, IRS-related matters, and public tax education. While in college, Vilma volunteered in an IRS-sponsored tax assistance program and was recognized for her community service by local and state officials.
Known as "Your Tax Geek," Vilma is passionate about making taxes easier to understand and helping people navigate an increasingly complex tax system.
