March is a month that can feel deceptively calm, but for many investors, two significant financial deadlines are closing in. The April 15 tax filing deadline and, for a specific group of retirees, an April 1 required minimum distribution (RMD) deadline both fall within weeks of each other. Preparing now, rather than in a last-minute scramble, can reduce stress, minimize penalties, and create meaningful planning opportunities.
The April 1 RMD Deadline: Who It Affects This Year
Most retirees are familiar with the December 31 annual RMD deadline. But a separate and often misunderstood rule applies to first-time RMD takers: if you turned 73 in 2025, your first required minimum distribution is due no later than April 1, 2026.¹
This flexibility exists to give new RMD takers extra time to plan. However, choosing to delay comes with a significant trade-off. Anyone who waits until April 1 to take their first RMD will still owe a second RMD by December 31, 2026 — meaning two taxable distributions in a single calendar year. That additional income can push a retiree into a higher tax bracket, increase Medicare premiums through IRMAA surcharges, and affect the taxability of Social Security benefits.²
For those in this situation, the decision of whether to take the first RMD in early 2026 or whether it was better to take it before December 31, 2025 is worth reviewing with your Wedbush financial advisor. The math is highly individual.
It is also worth noting that failing to take the full RMD by the applicable deadline carries a penalty of 25% of the amount not withdrawn — reduced to 10% if corrected promptly.³ Staying on top of these deadlines is not optional.
A Note on Qualified Charitable Distributions
For investors who are charitably inclined and are age 70½ or older, a Qualified Charitable Distribution (QCD) allows a direct transfer from an IRA to a qualified charity and can count toward satisfying an RMD for the year. The 2026 QCD limit is $111,000.⁴ Because the distribution is excluded from taxable income, QCDs are often a more tax-efficient way to give than donating cash and taking a deduction. This is a strategy worth discussing with your Wedbush financial advisor before the deadline passes.
Tax Filing: Get Ahead of April 15
The April 15 tax filing deadline applies to most individual filers. By March, the documents you need — W-2s, 1099s, year-end investment statements, and records of retirement contributions or distributions — should either be in hand or easily accessible. Confirming you have everything before sitting down to file prevents delays and reduces the risk of errors.
For investors with more complex situations such as a business sale, an inheritance, a large Roth conversion, or significant investment activity, additional review time is especially valuable. Filing for an extension to October 15 is an option, but it does not extend the deadline to pay any taxes owed. Estimating and paying what you owe by April 15 avoids penalties even if the return itself is filed later.⁵
Use This Window to Plan, Not Just Comply
Tax season and RMD season often feel like obligations. But both represent a natural moment to look ahead. A completed tax return reveals income sources, savings rates, investment gains and losses, and retirement distributions, making it one of the most useful planning documents of the year. Reviewing it with your advisor can surface opportunities for the rest of 2026: adjusting withholding, planning future RMD timing, modeling Roth conversions, or coordinating charitable giving.
Bottom Line: April may feel far away in early March, but the deadlines for first-time RMD takers and all tax filers arrive quickly. Taking action now, rather than reacting at the last minute, allows for more thoughtful decisions and fewer missed opportunities.
Sources:
[2] https://www.agemy.com/blog/new-rmd-updates-for-2026-what-every-retiree-needs-to-know/
[3] https://www.finra.org/investors/insights/required-minimum-distributions
[4] https://www.schwab.com/learn/story/required-minimum-distributions-what-you-should-know
[5] https://www.irs.gov/taxtopics/tc304
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