How Much Is the Required Minimum Distribution (RMD) if You Have $100,000 in Your Retirement Account?
One of the pros of retirement accounts like 401(k)s and traditional IRAs is that contributions can lower your taxable income.However, getting a tax break upfront doesn't mean you're off the hook entirely; you'll eventually have to pay taxes on your withdrawals in retirement. And to prevent situations where someone doesn't make any withdrawals to avoid those taxes, the IRS has required minimum distributions (RMDs) that begin the year you turn 73.The amount you're required to withdraw each year depends on your account balance and age. As an example, let's walk through the RMD for someone with $100,000 in their retirement account.Continue reading
One of the pros of retirement accounts like 401(k)s and traditional IRAs is that contributions can lower your taxable income.
However, getting a tax break upfront doesn't mean you're off the hook entirely; you'll eventually have to pay taxes on your withdrawals in retirement. And to prevent situations where someone doesn't make any withdrawals to avoid those taxes, the IRS has required minimum distributions (RMDs) that begin the year you turn 73.
The amount you're required to withdraw each year depends on your account balance and age. As an example, let's walk through the RMD for someone with $100,000 in their retirement account.
