Required Minimum Distribution

[Steve10S]

I am turning 73 in July 2025. When should I start the RMD and how much withholding would be recommended?

[KimberW]

Because you were born after January 1, 1950, you must start taking your RMD no later than April 1 of the first calendar year after you turn 73. But, if you wait until April of the following year, then you will actually have two RMD distributions for that year. The one due by April for the year you turned 73 (2025, in your case) and the one due by the end of the year for that year.

This article contains all of the age-related timing rules -- despite it having "age 72" in its title: What is the required minimum distribution once I reach age 72? 

The suggested withholding depends a lot on your other income. You can use the TurboTax Tax Calculator to see what your taxable income could look like -- and based your withholding percentage off of that information. You would enter your expected RMD amount in the IRA/Pension distributions box in the Other Income section of that calculator. (Please note that the calculator is still set for 2023 tax rates, but will update soon to 2024 rates.)

[Terri Lynn]

Hello, Steve105 and thank you for joining us!

You asked when you should take your first RMD and how much you should have withheld for taxes.

The usual deadline for taking your RMD is December 31 of each year. However, for your first RMD, and only the first, you can choose to  wait to take  this first  distribution, until April 1 of the year after you turn 73. In your case, you stated you will turn 73 in July of 2025, so you have the option of taking the first one by December 31, 2025 or you can delay taking it if you would like until April 1  2026.

Please keep in mind, however, opting to delay your RMD means you will have to take  your first and second RMD, in the same year, which  ultimately may push you into a higher tax bracket.

As far as the amount you should withhold, when determining this youn eed to keep in mind that  RMD's  withdrawn are taxed at your ordinary income tax rates.  The following links will help you to determine your marginal and effective rates and ultimately help you to decide  how much to withhold.

• How to determine your tax bracket 
• Tax Bracket Calculator 

Please feel free to reach backout with any additional questions or concerns you might have!

Have a great rest of your day!

Terri Lynn, EA

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer.”