What's the minimum you're required to withdraw from a $750,000 retirement account?
Retirees with a $750,000 balance in a traditional IRA or 401(k) must adhere to required minimum distributions (RMDs) starting at age 73. The amount to withdraw annually increases as the retiree ages, based on a life expectancy factor set by the IRS. It's important to consider the tax implications of these withdrawals, as they can affect overall retirement planning.
- ▪RMDs apply to most tax-deferred retirement accounts, including traditional IRAs and 401(k)s.
- ▪Account holders must start taking RMDs at age 73, with the amount determined by a formula involving the prior year-end balance and a life expectancy factor.
- ▪For a $750,000 balance, the required withdrawal at age 73 is about $28,302, increasing to approximately $37,129 by age 80.
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MoneyWatch: Managing Your Money What's the minimum you're required to withdraw from a $750,000 retirement account? We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. .chip { background-image: url('/fly/bundles/cbsnewscore/images/chip-bgd/chip-bgd-moneywatch.jpg'); } By Angelica Leicht Angelica Leicht Senior Editor, Managing Your Money Angelica Leicht is the senior editor for the Managing Your Money section for CBSNews.com, where she writes and edits articles on a range of personal finance topics. Angelica previously held editing roles at The Simple Dollar, Interest, HousingWire and other financial publications.
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