The RMD "Tax Bomb" on $1.4 Million, Priced Line by Line (2026 Rules)

📲 BUDGET PLANNER PRO — the RMD Calculator, the Retirement Tax Map and the Tax Torpedo you saw in this video, on your own numbers, every year: https://unclejohnfinancial.gumroad.com/l/BudgetPlannerPro 🎟️ Use code UNCLEJOHN30 for 30% OFF 📗 THE SOCIAL SECURITY WORKBOOK — Module 3 (couples & survivors) and Module 5 (the tax on your check), worked out for 2026: https://unclejohnfinancial.gumroad.com/l/social-security-workbook Everyone calls it the RMD tax bomb. We fill in the actual 2026 return for an invented couple, Walt and June (both 73, $1.4 million in Walt's IRA, $4,100 a month of Social Security): a $52,830 forced withdrawal, $47,500 of deductions, and $4,274 of federal tax — about 8 cents on the dollar. Then we check the five fuses that decide whether it ever goes off: age, the income stack, the survivor's single return, the 2029 senior-deduction sunset, and Medicare's surcharge. We also fix two numbers from a popular version of this math ($99,005 should be $99,554; the rate at 73 is 3.77%, not 3.5%). THE FIVE FUSES 1 Age — the divisor shrinks: 3.77% at 73 → 6.25% at 85 → 8.2% at 90 (RMD Calculator) 2 Stack — a pension or other income fills the low rows first (Tax Map) 3 Survivor — the widow's single return: $18,000 less income, $2,710 more tax (SS Optimizer · Workbook Module 3) 4 Sunset — the $6,000 senior deduction is written for 2025–2028 (Tax Map) 5 Surcharge — Medicare's line is $218,000 joint but $109,000 single (Tax Torpedo) ⏱️ CHAPTERS 0:00 – The bill nobody shows 0:51 – Year one: the return, line by line 3:40 – Run it on your own numbers 4:52 – Fuses 1 & 2: age and the stack 6:53 – Fuse 3: the survivor 8:28 – Fuses 4 & 5: the sunset and the surcharge 10:21 – The Roth trap, and three small rules 12:24 – Check your own five fuses 👇 Which fuse is lit for you? Tell us the number in the comments. 📘 More from Uncle John Financial The Last 10 Years Before Retirement (book): https://unclejohnfinancial.gumroad.com/l/last10years ────────────────────────────────── 📚 SOURCES — every page shown in this video ────────────────────────────────── Form 1040 (the return itself) — IRS https://www.irs.gov/pub/irs-pdf/f1040.pdf RMD rules, first-year deadline, missed-RMD excise tax — IRS RMD FAQs https://www.irs.gov/retirement-plans/retirement-plan-and-ira-required-minimum-distributions-faqs Born 1960 or later: age 75 — Treasury final regulations (Federal Register, July 19, 2024) https://www.federalregister.gov/documents/2024/07/19/2024-14542/required-minimum-distributions Uniform Lifetime Table, QCDs — IRS Publication 590-B https://www.irs.gov/pub/irs-pdf/p590b.pdf Taxation of Social Security — IRS Publication 915 https://www.irs.gov/publications/p915 2026 brackets and standard deduction — IRS Rev. Proc. 2025-32 https://www.irs.gov/pub/irs-drop/rp-25-32.pdf Senior deduction (2025–2028) — IRS https://www.irs.gov/newsroom/one-big-beautiful-bill-act-tax-deductions-for-working-americans-and-seniors Filing status in the year a spouse dies — IRS Publication 501 https://www.irs.gov/pub/irs-pdf/p501.pdf Survivors benefits — SSA Publication 05-10084 https://www.ssa.gov/pubs/EN-05-10084.pdf 2026 Part B premiums and IRMAA — CMS https://www.cms.gov/newsroom/fact-sheets/2026-medicare-parts-b-premiums-deductibles Two-year look-back — SSA https://www.ssa.gov/benefits/medicare/medicare-premiums.html "84% took only the required amount" — EBRI & J.P. Morgan Asset Management (June 24, 2021) https://www.ebri.org/content/new-combined-dataset-reveals-unique-insights-into-income-and-spending-in-retirement ⚠️ DISCLAIMER Education, not personal financial, tax or legal advice. Uncle John Financial is not a registered investment adviser, CPA or attorney. Walt and June are invented; your RMDs, taxes and Medicare premiums depend on your own accounts, state and filing status. Figures are 2026 federal rules (state tax not included) and change every year — check the linked pages or a qualified tax professional before you act. #RMD #retirementtaxes #requiredminimumdistribution #socialsecurity #medicare