Required Minimum Distributions (RMDs) apply to traditional IRAs and most employer‑sponsored retirement plans once a participant reaches age 73. In the first year RMDs are required, the distribution does not need to be taken by December 31. Instead, the initial RMD must be withdrawn no later than April 1 of the following year. After that first withdrawal, all subsequent RMDs must be taken by December 31 each year.

Because of this timing, the year after you turn 73 may require two RMD payments—one by April 1 for the prior year and one by December 31 for the current year. Having two taxable distributions in one calendar year may push you into a higher tax bracket, increase the tax rate on qualified dividends or long‑term capital gains, or affect other income‑based tax calculations.

To avoid timing issues or missed deadlines, it’s helpful to use a calendar or reminder system, and you may want to set up automatic RMD withdrawals directly with your plan custodian. Since RMD timing can affect your broader tax picture, it’s also wise to consult your investment advisor to ensure your distribution strategy aligns with your overall financial and tax planning goals.

If you need guidance that is tailored specifically to your unique situation, we encourage you to connect directly with Pro Advisor Support. Their experienced team specializes in assisting clergy and church organizations with complex tax, payroll, bookkeeping, and HR matters. Whether you have detailed questions about compliance, deductions, or planning strategies, they can provide expert advice and walk you through the next steps with clarity and confidence.

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