Americans turning 73 in 2026 must take their first required minimum distribution (RMD) from tax-deferred retirement accounts like traditional IRAs and 401(k)s. Under the SECURE Act 2.0, the first RMD can be delayed until April 1, 2027, but doing so requires a second withdrawal by December 31, 2027 — resulting in two taxable distributions in the same year. This could increase tax liability, trigger higher Medicare premiums through IRMAA surcharges, and make more of a person's Social Security benefits taxable.

The RMD amount is calculated by dividing the account balance as of December 31, 2025, by the IRS life expectancy factor — 26.5 for age 73. For example, a $530,000 balance would require a $20,000 withdrawal. Missing the deadline results in a 25% excise tax penalty, reduced to 10% if corrected within two years.

Strategically, taking the first RMD in 2026 spreads income across two tax years, helping retirees stay in a lower tax bracket. Those inclined to give to charity can use a Qualified Charitable Distribution (QCD) of up to $111,000 directly from an IRA, which counts toward the RMD but doesn't increase taxable income. Reinvesting RMDs in a taxable brokerage account or funding a Roth IRA (if eligible) can keep the money growing.