Market Trends
11 June 2026
Quick Answer
Required minimum distributions (RMDs) force you to withdraw money from a traditional 401(k) or IRA each year starting at age 73 (or 75 if born in 1960 or later). Because those withdrawals count as ordinary income, a large RMD can push more of your Social Security benefits into the taxable column and lift your Medicare Part B and Part D premiums through income surcharges. Planning withdrawals before RMDs begin — and holding assets that are not tied to the stock and bond markets — can soften all three pressures.
For working Americans, a 401(k) is one of the most direct ways to build retirement savings. You set a contribution, it leaves your paycheck automatically, and if your employer matches, a portion of your investment is funded for you. Over a career of steady contributions and market growth, the account can grow into a substantial sum.
That success carries a consequence many savers never see coming. The same tax deferral that helped the balance grow eventually comes due — and the federal government decides the timing through required minimum distributions. For retirees with a large traditional balance, RMDs can quietly raise the tax on Social Security benefits and increase Medicare premiums in the same year.
Key Takeaways
-
RMDs begin at age 73 for those born 1951–1959 and at 75 for those born in 1960 or later, and a missed RMD can carry a penalty of up to 25%.
-
RMDs are taxed as ordinary income, which can push retirees into a higher bracket and increase the share of Social Security benefits subject to tax.
-
Up to 85% of Social Security benefits can become taxable once combined income exceeds $34,000 (single) or $44,000 (married filing jointly) — thresholds frozen since the 1980s and 1990s.
-
Medicare Part B and Part D income surcharges (IRMAA) operate as cliffs: one dollar over a threshold can add thousands per year in premiums.
-
Roth conversions before RMDs begin and diversification into assets outside the market — including physical gold and silver — are two ways to manage the squeeze.
What required minimum distributions actually are
A traditional 401(k) or IRA lets you invest pre-tax dollars, lowering your taxable income in your working years. In exchange, the IRS expects income tax on those dollars eventually — and it will not wait indefinitely.
Snapshot: Once you reach your RMD age, you must withdraw a minimum amount from tax-deferred accounts every year, calculated by dividing the prior year-end balance by an IRS life-expectancy factor. You can always withdraw more, but never less.
The SECURE 2.0 Act reshaped the start age. Individuals born between 1951 and 1959 begin RMDs at age 73, and individuals born in 1960 or later begin at age 75. The first distribution can be delayed until April 1 of the year after you reach RMD age, but doing so stacks two RMDs into a single tax year — a choice that can backfire by inflating that year’s income.
RMD start age by birth year, under SECURE 2.0
Source: IRS; SECURE 2.0 Act.
| Birth year | RMD begins at age | First RMD due by |
| Before July 1, 1949 | 70½ (legacy) | Already in effect |
| 1949 – 1950 | 72 | Already in effect |
| 1951 – 1959 | 73 | April 1 after turning 73 |
| 1960 or later | 75 | April 1 after turning 75 |
The penalty for missing an RMD is steep: up to 25% of the amount not withdrawn, reduced to 10% if corrected within two years. That alone makes RMDs hard to ignore. The deeper issue is what those forced withdrawals do to the rest of your retirement income.
How RMDs raise the tax on your Social Security
Social Security benefits are not automatically tax-free. The IRS uses a figure called combined income — also known as provisional income — to decide how much of your benefit is taxable. The formula is your adjusted gross income (excluding Social Security), plus any tax-exempt interest, plus half of your annual Social Security benefits.
A large RMD lands directly inside that calculation, because the withdrawal raises your adjusted gross income. Push combined income high enough and a larger slice of your benefit becomes taxable.
Share of Social Security benefits that can be taxable, tax year 2026
Thresholds are not indexed for inflation. Source: IRS Publication 915.
| Filing status | 0% taxable | Up to 50% taxable | Up to 85% taxable |
| Single / Head of household | Under $25,000 | $25,000 – $34,000 | Over $34,000 |
| Married filing jointly | Under $32,000 | $32,000 – $44,000 | Over $44,000 |
| Married filing separately | — | — | Most cases: 85% |
Here is the part that surprises retirees: these thresholds have not been adjusted for inflation since they were written into law in the 1980s and 1990s. Every year, cost-of-living increases push more retirees over the lines without the lines ever moving. A couple receiving average benefits plus a modest pension or IRA withdrawal can find a portion of their Social Security taxed — an outcome that, in 1983, applied only to higher-income households.
A 401(k) balance large enough to fund a comfortable retirement is also large enough to tax your Social Security and raise your Medicare bill.
How RMDs raise your Medicare premiums
The second pressure point is Medicare. Higher-income beneficiaries pay an Income-Related Monthly Adjustment Amount (IRMAA) on top of standard Part B and Part D premiums.
Snapshot: IRMAA is based on your modified adjusted gross income from two years prior. Your 2026 premiums are set by your 2024 tax return — so an RMD taken today can raise your Medicare cost two years later.
In 2026, the standard Part B premium is $202.90 per month, and IRMAA surcharges can lift the total Part B premium to as much as $487.00 per month at the highest tier. The surcharges apply per person, so a married couple where both are on Medicare can owe the surcharge twice.
2026 Medicare IRMAA — based on 2024 MAGI
Part B premium plus surcharge. Source: CMS; Kiplinger 2026 IRMAA tables.
| MAGI — single (2024) | MAGI — married joint (2024) | Total Part B / month |
| $109,000 or less | $218,000 or less | $202.90 (no surcharge) |
| $109,001 – $137,000 | $218,001 – $274,000 | $284.10 |
| $137,001 – $171,000 | $274,001 – $342,000 | $405.90 |
| $171,001 – $205,000 | $342,001 – $410,000 | $527.70 |
| $205,001 – $500,000 | $410,001 – $750,000 | $649.50 |
| Above $500,000 | Above $750,000 | $689.90 |
The detail that catches retirees off guard is the cliff. IRMAA brackets have no phase-in. Exceeding a threshold by a single dollar triggers the full surcharge for that tier — and because the lookback is two years, a large RMD or Roth conversion done without planning can quietly set up a higher Medicare bill down the road.
-
73: Age RMDs begin for those born 1951–1959
-
85%: Max share of Social Security that can be taxed
-
$487: Top 2026 monthly Part B premium with IRMAA
The three-way squeeze, illustrated
One forced withdrawal can move all three levers in the same year: it can raise your income tax bracket, pull more of your Social Security into taxable territory, and — two years later — lift your Medicare premium. The chart below shows how a rising RMD interacts with the taxable share of a Social Security benefit.
How a larger RMD raises the taxable share of Social Security
Illustrative, married filing jointly, $40,000 annual benefit. For education only.
-
No RMD: 0% taxable
-
$15k RMD: ~50% taxable
-
$30k RMD: ~70% taxable
-
$50k RMD: 85% taxable
-
$70k RMD: 85% taxable
Once the benefit reaches the 85% ceiling, additional RMD income no longer increases the taxable share of Social Security — but it can keep climbing toward the next Medicare IRMAA cliff. The takeaway is that the largest balances face the most exposure, and the exposure compounds across systems.
How to plan around RMDs before they begin
The window that matters most is the stretch between leaving work and the year RMDs start. Income is often lower then, which creates room to act before the forced withdrawals arrive.
-
Consider Roth conversions in lower-income years
Moving money from a traditional 401(k) or IRA into a Roth IRA means paying tax now, in years when your bracket may be lower. Qualified Roth withdrawals are not taxed and are not subject to RMDs, which keeps future combined income — and IRMAA exposure — lower.
-
Manage withdrawals strategically before age 73
Taking measured distributions during early retirement, before Social Security and RMDs stack on top of each other, can flatten the income spikes that trigger benefit taxation and Medicare surcharges.
-
Watch the IRMAA cliffs two years ahead
Because Medicare looks back two years, the income you report at 71 can shape the premium you pay at 73. Coordinating conversions and withdrawals around the bracket thresholds avoids accidental surcharges.
-
Diversify into assets outside the market
A 401(k) heavily concentrated in stocks grows the very balance that drives larger RMDs. Holding a portion of retirement wealth in assets with low correlation to equities — including physical gold and silver inside a self-directed IRA — can temper that concentration while preserving purchasing power.
Where physical gold and silver fit
RMD planning is partly about timing and partly about what you own. A portfolio dominated by market assets compounds two risks at once: it can swell the balance that fuels future RMDs, and it leaves retirement savings exposed to the same downturns that often arrive when retirees can least afford them.
Precious metals have historically behaved differently from stocks and bonds. According to World Gold Council data, gold returned over 60% in 2025 and reached more than 50 all-time highs that year, supported by central bank buying and rising investor demand. Crucially, gold has a long record of low correlation with equities — during five of the largest market downturns since 2000, gold posted positive returns in four while the S&P 500 declined in all five.
A precious metals IRA holds physical gold, silver, platinum, or palladium inside a tax-advantaged retirement account. It is still subject to RMD rules if it is a traditional account — but as part of a broader plan, it adds an asset class that does not move in lockstep with the market, which can help smooth the balance trajectory that drives RMD size over time. A licensed specialist can walk through whether a traditional or Roth structure better fits your RMD and tax picture.
Worth noting: Most retirement professionals suggest keeping precious metals to a defined share of a portfolio — commonly cited at up to roughly 15% — rather than a core holding. The goal is diversification and stability, not concentration.
Talk through your RMD exposure with a specialist
A Vault Metal Precious Metals Specialist can review how a Gold or Silver IRA fits alongside your 401(k) and your RMD timeline — with no obligation.
Call 877-330-3228
Frequently asked questions
At what age do required minimum distributions start?
RMDs begin at age 73 for individuals born between 1951 and 1959, and at age 75 for those born in 1960 or later, under the SECURE 2.0 Act. Your first RMD can be delayed until April 1 of the year after you reach RMD age, though that stacks two distributions into one tax year.
Can RMDs make my Social Security benefits taxable?
Yes. RMDs count as ordinary income and raise your combined income, the figure the IRS uses to tax benefits. Once combined income passes $34,000 for a single filer or $44,000 for joint filers, up to 85% of Social Security benefits can be taxed. These thresholds are not indexed for inflation, so more retirees cross them each year.
How do RMDs affect Medicare premiums?
A large RMD raises your modified adjusted gross income, which can trigger the Income-Related Monthly Adjustment Amount (IRMAA) on Medicare Part B and Part D. IRMAA uses your income from two years prior, so a withdrawal today can raise premiums two years later. The brackets are cliffs — one dollar over a threshold triggers the full surcharge for that tier.
Do Roth IRAs have required minimum distributions?
No. Roth IRAs are not subject to RMDs during the original owner’s lifetime, and qualified Roth withdrawals are not taxed. Converting traditional balances to a Roth before RMDs begin is one way to reduce future taxable income, Social Security taxation, and Medicare surcharges. Beneficiaries who inherit Roth accounts are still subject to distribution rules.
Does a Gold IRA have required minimum distributions?
A traditional precious metals IRA follows the same RMD rules as any other traditional IRA, beginning at age 73 or 75 depending on birth year. A Roth precious metals IRA is not subject to RMDs during the owner’s lifetime. A specialist can help you decide which structure fits your tax situation.
What is the penalty for missing an RMD?
The penalty is up to 25% of the amount you failed to withdraw. It can be reduced to 10% if you correct the shortfall and file the required paperwork within two years. Because the penalty is so large, setting up automatic distributions is a common safeguard.
How can gold and silver help with RMD planning?
Precious metals have historically held low correlation to stocks and bonds, which can reduce the concentration in market assets that drives larger RMDs over time. Holding a measured portion of retirement wealth in physical gold or silver adds diversification and a potential hedge against inflation, while broader timing strategies like Roth conversions address the tax side directly.
About Vault Metal
Vault Metal LLC is a full-service physical precious metals dealer and Precious Metals IRA provider based in El Segundo, California, with an A+ Better Business Bureau rating. Our specialists help retirement savers diversify, protect, and preserve wealth through physical gold, silver, platinum, and palladium — including tax-free, penalty-free IRA and 401(k) rollovers handled from start to finish.
Disclaimer: This article is for educational purposes only and does not constitute tax, legal, or investment advice. Tax thresholds, premiums, and RMD rules cited reflect figures available at the time of writing and may change. Vault Metal is not a licensed tax advisor; consult a qualified professional regarding your individual situation before making decisions about RMDs, Roth conversions, Social Security, Medicare, or precious metals investments. Past performance does not guarantee future results.
