Increased periods of bottom water anoxia in deep temperate lakes due to decreasing frequency and depth of water column mixing in a warming climate may result in the reductive dissolution of iron minerals and increased flux of nutrients from the sediment into the water column. Here, we assessed the sediment properties and reactivities under depleted oxygen concentrations of Lake Tahoe, a deep ultraoligotrophic lake in the Sierra Nevada mountain range. Using whole-core incubation experiments, we found that a decrease in dissolved oxygen concentration in the top 2 cm of the sediment resulted in an extension of the microbial iron reduction zone from below 4.5 to below 1.5 cm depth. Concentrations of reactive iron generally decreased with sediment depth, and microbial iron reduction seemingly ceased as concentrations of Fe(II) approximated concentrations of reactive iron. These findings suggest that microorganisms preferentially utilized reactive iron and/or iron minerals became less reactive due to mineral transformation and surface passivation. The estimated release of iron mineral-associated phosphorus is not expected to change Lake Tahoe’s trophic state but will likely contribute to increased phytoplankton productivity if mixed into surface waters.