Required IRA withdrawals begin at age 73 or 75, depending on your birth year, and each withdrawal is based on the previous year's end balance.
Your RMD is recalculated annually, so the required amount can go up or down from one year to the next.
With a $1 million IRA in our example, the first RMD is about $40,650, then rises over time before falling.
As retirement approaches, a key planning question is how the money you've saved eventually becomes income. That can mean weighing Social Security, pensions, and cash reserves, and when to begin tapping your retirement accounts.
But eventually, at least some withdrawals are no longer optional. Required minimum distributions (RMDs) begin once you reach the applicable age, so it's useful to know how much you have to take out and what that would mean for your income, taxes, and spending.
#income
Your RMD is recalculated annually, so the required amount can go up or down from one year to the next.
With a $1 million IRA in our example, the first RMD is about $40,650, then rises over time before falling.
As retirement approaches, a key planning question is how the money you've saved eventually becomes income. That can mean weighing Social Security, pensions, and cash reserves, and when to begin tapping your retirement accounts.
But eventually, at least some withdrawals are no longer optional. Required minimum distributions (RMDs) begin once you reach the applicable age, so it's useful to know how much you have to take out and what that would mean for your income, taxes, and spending.
#income
11 days ago
