Father retiring at age 77. First RMD timing question

[koryg75]

My father has finally decided to retire from his profession at age 77 in September of this year. Since this will be his first RMD, does he still have the option to defer it until April of 2026? It could make a big difference in his 2025 taxes. Thank you in advance.

[Chuckles960]

My father has finally decided to retire from his profession at age 77 in September of this year. Since this will be his first RMD, does he still have the option to defer it until April of 2026? It could make a big difference in his 2025 taxes. Thank you in advance.

Yes. Note that it will make a difference to his 2026 taxes also. Depending on the amounts involved, it may be helpful to split the first RMD between the two years in such a way as to avoid crossing into a higher tax bracket.

[koryg75]

Thank you for the prompt reply! I think he’d be better off doing both RMD’s next year. The RMD if taken this year would most likely be taxed at 32%. Next year would be 22%. So pretty big difference if he can wait until 2026 for both RMD’s.