Why Turning 73 in 2027 Could Suddenly Raise Your Social Security Tax Bill

Turning 73 doesn't change your Social Security benefit amount. But for people hitting that age in 2027, it can trigger a tax-code rule that reshapes how much of their income the IRS counts, and that can quietly pull more of their Social Security benefits into taxable territory.

The culprit is the required minimum distribution, or RMD, a mandatory withdrawal from certain retirement accounts. It's not a Social Security rule at all, but the two systems intersect in a way that catches many retirees off guard. Here's how the mechanics work, and why the timing of that first withdrawal matters more than most people realize.

What a required minimum distribution actually is

An RMD is the minimum amount the IRS requires you to withdraw each year from certain tax-deferred retirement accounts once you reach age 73, according to the IRS. The rule applies to traditional IRAs, SEP IRAs, SIMPLE IRAs, and most employer retirement plan accounts, such as a 401(k). Roth IRAs are not subject to RMDs during the original owner's lifetime, and designated Roth accounts inside a 401(k) or 403(b) are also exempt while the account owner is alive, per IRS guidance.

Workers still employed at a company sponsoring their retirement plan may be able to delay RMDs from that specific plan until they retire, unless they own more than 5% of the business, the IRS notes. That exception doesn't apply to IRAs.

The RMD amount isn't arbitrary. It's calculated by dividing your account balance as of December 31 of the prior year by a life-expectancy factor from the IRS Uniform Lifetime Table, found in IRS Publication 590-B. A larger account balance or an older age generally means a larger required withdrawal, and that withdrawal counts as ordinary taxable income.

The first-RMD deadline, and the trap of two distributions in one year

Here's where timing gets tricky. The IRS gives you some flexibility on your very first RMD: you can take it by December 31 of the year you turn 73, or you can delay it until April 1 of the following year, according to the IRS. For someone who turns 73 in 2027, that means the first RMD could be delayed until April 1, 2028.

That flexibility comes with a catch.

If you push your first RMD into the following year, you'll still owe your second RMD by December 31 of that same year. In other words, delaying the first withdrawal means two taxable distributions could land in a single tax year, potentially pushing you into a higher tax bracket and increasing how much of your Social Security benefit becomes taxable in that year.

The IRS illustrates this pattern with its own examples: someone who turns 73 in 2025, for instance, and delays their first RMD to April 1, 2026, must also take a second RMD by December 31, 2026, resulting in two distributions within the same calendar year.

How Social Security benefit taxation actually works

Social Security benefits can become partly taxable based on a measure called "combined income" (sometimes called provisional income). The Social Security Administration defines combined income as your adjusted gross income, plus any tax-exempt interest, plus half of your annual Social Security benefits.

The thresholds, which have not been adjusted for inflation since they were established by law, are as follows, according to the IRS:

Single filers (or head of household)

With combined income between $25,000 and $34,000, up to 50% of benefits may be taxable. Above $34,000, up to 85% may be taxable.

Married couples filing jointly

With combined income between $32,000 and $44,000, up to 50% of benefits may be taxable. Above $44,000, up to 85% may be taxable.

Married individuals filing separately who lived with their spouse at any point during the year

Generally have no threshold at all, meaning benefits may be taxable regardless of combined income, per IRS guidance.

It's worth repeating a point that trips people up constantly: having up to 85% of your benefits become taxable is not an 85% tax rate. It means up to 85 cents of every benefit dollar gets added to your taxable income, where it's then taxed at your regular marginal income tax rate, not at 85%.

A before-and-after example

Consider a hypothetical single filer, filing as "single" for federal tax purposes, who receives $2,071 a month in Social Security, which matches the Social Security Administration's estimated average monthly benefit for a retired worker as of January 2026. That's about $24,852 a year in benefits.

Before the first RMD: Suppose this retiree's only other income is $10,000 a year in pension income, with no taxable IRA withdrawals yet. Half of Social Security benefits ($12,426) plus other income ($10,000) equals a combined income of about $22,426, below the $25,000 threshold. In this scenario, none of the Social Security benefit would be taxable.

After the first RMD: Now suppose this same retiree turns 73 and takes a first RMD of $15,000 from a traditional IRA, in addition to the $10,000 in pension income.

Combined income becomes roughly $12,426 (half of benefits) plus $25,000 (pension plus RMD), or about $37,426. That crosses both the $25,000 and $34,000 thresholds for single filers, meaning up to 85% of this retiree's Social Security benefit could now be included in taxable income, according to IRS rules. The retiree hasn't lost any Social Security benefit amount, but a larger share of it is now subject to income tax.

This is a simplified, hypothetical illustration. Actual combined income calculations depend on a worksheet in IRS Publication 915 and should factor in all sources of income.

Turning 73 doesn't touch your benefit amount

It bears repeating: nothing about turning 73 changes the dollar amount of your Social Security check. The RMD rule lives entirely in the tax code governing retirement accounts. What changes is your taxable income picture, which can, in turn, affect how much of your already-determined Social Security benefit the IRS treats as taxable.

Your actual benefit payment from the Social Security Administration stays the same unless you have separate changes, such as a cost-of-living adjustment (COLA) or a change in Medicare premiums withheld from your check.

Why this matters for retirement planning

Because the RMD rule and the Social Security tax-threshold rule interact but aren't formally connected, a retiree can go from owing little or no tax on benefits to having a meaningful share taxed, simply because an account balance crossed into RMD territory.

Those approaching 73 may want to review projected RMD amounts, pension income, and other withdrawals together, rather than looking at Social Security taxation in isolation. The IRS offers worksheets in Publication 915 to help estimate combined income, and the SSA's online tools can help retirees understand how their benefit interacts with other income. A tax professional or financial advisor can also help run projections specific to individual accounts and filing status.

Bottom line

Turning 73 doesn't cut your Social Security benefit, but it can trigger required withdrawals that raise your taxable income and pull more of your benefit into taxable territory, especially if a delayed first RMD causes two distributions to land in the same tax year. Understanding combined income and the difference between a higher taxable percentage and a higher tax rate can help retirees avoid an unwelcome surprise come tax season.

Reviewing account balances and projected RMDs well before the year you turn 73 can offer more flexibility in managing the timing of withdrawals and the resulting tax impact, something the IRS's published worksheets and a qualified tax advisor can help clarify.

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