Taking an RMD in 2026? Here's How It Could Affect Your Social Security Benefits

May 24, 2026 - 01:40

If you are planning to take a required minimum distribution from your retirement accounts in 2026, you might want to look closer at how that money flows through your tax return. The RMD itself is not the problem. The problem is what it does to your income.

When you take an RMD, that money gets added to your adjusted gross income. A higher AGI can push you into a higher tax bracket, but that is not the only issue. For many retirees, the bigger hit comes from how Social Security benefits are taxed. Once your combined income crosses certain thresholds, up to 85 percent of your Social Security benefits become taxable. And that threshold has not been adjusted for inflation in decades.

So here is the chain. You take your RMD. That extra income lifts your combined income. Suddenly, more of your Social Security check is subject to federal income tax. You end up paying tax on money you already paid tax on, plus tax on benefits that were supposed to be mostly tax-free.

The effect can be significant. For example, if your combined income is just under the threshold, a single RMD of 20,000 dollars could push 10,000 dollars or more of your Social Security benefits into the taxable zone. That means you owe hundreds or even thousands of extra dollars to the IRS.

There are ways to plan ahead. Some people take RMDs earlier in the year so they can estimate the tax impact. Others use qualified charitable distributions to move the money directly to a charity, which keeps the RMD out of their income entirely. But if you wait until late 2026 to think about it, you might already be locked into the chain.

The key is to run the numbers before you take the distribution. A few minutes with your tax software or a conversation with a tax professional could save you from a surprise bill next April.