Retirees Face $400,000 RMD Tax Hit as Bill Leaves Age 73 Withdrawal Rules Intact
Updated
Updated · 24/7 Wall St. · Jun 6
Retirees Face $400,000 RMD Tax Hit as Bill Leaves Age 73 Withdrawal Rules Intact
1 articles · Updated · 24/7 Wall St. · Jun 6
Summary
$1.5 million in a traditional IRA or 401(k) now still triggers a first required withdrawal of about $56,604 at age 73, because the One Big Beautiful Bill left SECURE 2.0 RMD rules unchanged.
That forced income can push married retirees with Social Security and pension income into the 22% to 24% federal brackets, with the 2026 standard deduction at $32,200 and the 24% bracket starting at $211,400 of taxable income.
The bill’s new $6,000 senior bonus deduction only trims a few hundred dollars for many households and does little against a projected lifetime tax burden near $400,000; Medicare IRMAA surcharges and state taxes can add more.
The main ways to cut the hit are Roth conversions before RMDs begin, qualified charitable distributions after age 70.5 — up to $111,000 in 2026 — and moving from income-tax states to no-tax states.
With PCE inflation near 4% in April 2026 and the 10-year Treasury around 4.5%, delaying planning can make future withdrawals more expensive, while early action can preserve six figures.