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Delaying Your First RMD at 73? Watch the IRMAA Cliff
Delaying your first RMD to April 1 can stack two distributions into one year, pushing income past IRMAA thresholds and adding $1,000 in Medicare premiums.
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A retiree turning 73 this year faces a choice that looks simple on the surface. Take the first required minimum distribution by December 31, or use the one-time option to push it to April 1 of the following year. The delay can seem harmless. It may stack two RMDs into one tax year, push modified adjusted gross income past the Medicare IRMAA threshold, and lock in higher Part B and Part D premiums for the entire next calendar year.
The one-time deferral applies only to the first RMD. Someone with a $900,000 traditional IRA would face a first-year distribution of roughly $35,000, based on the IRS uniform lifetime table. Taking it by year-end keeps that year's income at the normal level. Delaying to April 1 means the retiree must still take the second-year RMD by December 31 of the same year. Two distributions in one tax year add about $70,000 to that year's adjusted gross income.
That extra $70,000 can push a retiree past the IRMAA income brackets. For 2025, the first IRMAA surcharge for a single filer kicks in at modified adjusted gross income above $106,000. A married couple filing jointly faces the first surcharge above $212,000. A retiree with $80,000 in Social Security, pension, and other income who adds $70,000 in RMDs lands at $150,000 – well into the second IRMAA tier for a single filer. The surcharge adds roughly $70 a month per person for Part B and another $12 for Part D, totaling nearly $1,000 a year in extra premiums. That surcharge applies for the full 12 months of the following year, regardless of when the income was recognized.