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Reaching $1.5 million in your 401(k) plan could feel like touching the finish line of a decades-long marathon. It's obviously a time for celebration.
But there's someone else celebrating with you: the taxman.
With such a large balance in your retirement account, you're potentially at risk of triggering required minimum distributions (RMDs) in your retirement, according to the IRS (1). Simply put, an RMD is the minimum amount you have to withdraw from your 401(k) each year during retirement — and it's fully taxable as ordinary income.
Jeff Bezos backs a platform that lets anyone invest in rental homes for as little as $100 — 6 ways to build wealth like a landlord without actually being one
#Retirement #minimum #finance
Reaching $1.5 million in your 401(k) plan could feel like touching the finish line of a decades-long marathon. It's obviously a time for celebration.
But there's someone else celebrating with you: the taxman.
With such a large balance in your retirement account, you're potentially at risk of triggering required minimum distributions (RMDs) in your retirement, according to the IRS (1). Simply put, an RMD is the minimum amount you have to withdraw from your 401(k) each year during retirement — and it's fully taxable as ordinary income.
Jeff Bezos backs a platform that lets anyone invest in rental homes for as little as $100 — 6 ways to build wealth like a landlord without actually being one
#Retirement #minimum #finance
3 months ago
