How Much Is the Required Minimum Distribution (RMD) on a $250,000 Retirement Account?
Tax-deferred accounts such as traditional IRAs and 401(k) plans allow workers to delay paying taxes on qualified contributions. But the government must eventually get its due. Upon reaching a certain age, accountholders must take required minimum distributions (RMDs) annually, meaning they must withdraw (and pay taxes on) a percentage of the money held in certain types of retirement accounts.Read on to learn more about RMDs, including how to calculate the withdrawal amount for a retirement account with a balance of $250,000.Image source: Getty Images.Continue reading
Tax-deferred accounts such as traditional IRAs and 401(k) plans allow workers to delay paying taxes on qualified contributions. But the government must eventually get its due. Upon reaching a certain age, accountholders must take required minimum distributions (RMDs) annually, meaning they must withdraw (and pay taxes on) a percentage of the money held in certain types of retirement accounts.
Read on to learn more about RMDs, including how to calculate the withdrawal amount for a retirement account with a balance of $250,000.
Image source: Getty Images.