Should You Delay Required Withdrawals Until Age Seventy‑three?
Required minimum distributions (RMDs) are a routine but consequential part of retirement planning: they determine when you must begin drawing taxable funds from traditional IRAs and employer-sponsored retirement accounts and can materially affect income tax, Medicare premiums and estate plans. In recent years the required beginning age has shifted — first from 70½ to 72, and more recently Congress raised the age again. That change prompts a common question for people nearing retirement: is it better to start RMDs at the earlier age or to delay until the higher threshold? Understanding the rules, timing, tax trade-offs and practical steps can help you weigh whether the later starting age materially changes your distribution strategy and broader retirement cash flow.
How did the RMD age move from 72 to 73, and who it affects
Lawmakers updated RMD rules in two waves. The SECURE Act of 2019 moved the required beginning age from 70½ to 72, and the SECURE 2.0 Act enacted in late 2022 raised the RMD age again to 73 for many taxpayers. In plain terms, whether you must begin taking RMDs at 72 or 73 depends on your birthdate relative to statutory cutoffs; individuals who reach the earlier milestone before the effective date stayed subject to the prior rule. Because these changes are implemented by statute and IRS guidance, it’s important to verify your personal situation with plan administrators or the IRS. The new age impacts the timing of taxable income, the first-RMD deadline and how long you can leave pre-tax dollars invested before mandatory withdrawals.
When is your first RMD — timing differences between starting at 72 and 73
Regardless of whether the starting age is 72 or 73, the first RMD is generally due by April 1 of the year after you reach the required age, with subsequent RMDs due by December 31 each year. That timing rule creates an important planning choice: if you delay taking your first distribution until the following April, you may end up needing two RMDs in the same calendar year (the one for the prior year and the one for the current year), which can push you into a higher tax bracket. Comparing starting at 72 versus 73 therefore isn’t just about a single year’s tax: the deferral changes the schedule of taxable income and can affect year-by-year Medicare IRMAA surcharges or Social Security taxation.
Tax and cash-flow implications of delaying RMDs
Delaying required withdrawals until age 73 can let tax-deferred assets continue to grow, potentially increasing the account base for future compounding. That benefit must be weighed against the likely tax cost when withdrawals eventually start: larger required distributions can push you into higher marginal tax brackets. If you are considering Roth conversions before you reach the RMD age, postponing RMDs can create a window to convert pre-tax funds to Roth accounts (where future growth is tax-free), but conversions themselves trigger taxable income. Thoughtful consideration of RMD tax impact, projected retirement income needs, and the role of RMDs in your broader retirement cash-flow plan is essential.
How RMDs are calculated and what happens if you miss one
RMD amounts are computed using your retirement account balance on December 31 of the prior year and an IRS life expectancy factor from the appropriate table. Delaying the required beginning age reduces the number of years in the divisor and therefore can change annual withdrawal amounts when RMDs do begin. Historically the penalty for failing to take an RMD was severe; recent legislation reduced the excise tax on missed distributions from a much higher rate to a lower percentage, with the possibility of further reduction if the mistake is timely corrected. Still, missing an RMD or miscalculating payments can trigger penalties and filing requirements, so accurate calculation and documentation are important.
Quick comparison: starting RMDs at 72 vs 73
| Feature | Start at 72 | Start at 73 |
|---|---|---|
| Primary law | SECURE Act (2019) raised age from 70½ to 72 | SECURE 2.0 (2022) raised age to 73 for many taxpayers |
| First RMD due | April 1 of year after turning 72 | April 1 of year after turning 73 |
| Tax timing | Earlier taxable income begins; possible lower balances to tax later | Defers taxable income, may increase future annual RMDs |
| Planning implications | May allow smaller future RMDs but less time to grow tax-deferred | More time for tax-deferral and Roth conversion window; potential for larger RMDs later |
Practical considerations and next steps
Deciding whether to take advantage of the later starting age is not purely legal — it’s strategic. Model scenarios that show projected taxable income, marginal tax rates, Medicare premium impacts and estate considerations for both starting ages. Coordinate with plan administrators to confirm account balance dates and distribution mechanics, and review whether employer plans have different rules from IRAs. Because this is a tax-sensitive decision, consult a qualified tax advisor or financial planner who can run projections and explain how RMD timing interacts with Roth conversions, capital needs and legacy planning.
These statutory shifts affect millions of retirees but the right move depends on individual circumstances: current and future income, health, longevity expectations and tax planning opportunities. For authoritative, personalized guidance, check current IRS guidance and speak with a licensed tax professional or fiduciary financial advisor before altering distributions. The information in this article is for general information and should not be taken as tax or investment advice.
Disclaimer: This article provides general information only and does not constitute tax, legal or investment advice. Laws and IRS rules change; consult a qualified tax professional or financial advisor and the latest IRS publications to confirm how rules apply to your situation.
This text was generated using a large language model, and select text has been reviewed and moderated for purposes such as readability.
