How Much Is the Required Minimum Distribution (RMD) if You Have $750,000 in Your Retirement Account?
Although retirement accounts like 401(k)s and traditional IRAs give you a tax break by lowering your taxable income, that doesn't mean you're clear of taxes completely. Instead, you're responsible for paying taxes on your withdrawals in retirement.To prevent situations in which someone doesn't make any withdrawals to avoid taxes in retirement, the IRS has required minimum distributions (RMDs) that begin the year you turn 73.The amount of your RMD depends on a few factors, including the size of your retirement account. To see it in action, let's walk through the RMD for someone with $750,000 in their retirement account.Continue reading
Although retirement accounts like 401(k)s and traditional IRAs give you a tax break by lowering your taxable income, that doesn't mean you're clear of taxes completely. Instead, you're responsible for paying taxes on your withdrawals in retirement.
To prevent situations in which someone doesn't make any withdrawals to avoid taxes in retirement, the IRS has required minimum distributions (RMDs) that begin the year you turn 73.
The amount of your RMD depends on a few factors, including the size of your retirement account. To see it in action, let's walk through the RMD for someone with $750,000 in their retirement account.
