What Is the Required Minimum Distribution (RMD) for a $500,000 Retirement Account?
Key PointsIn most cases, retirees with tax-deferred retirement accounts must make withdrawals called required minimum distributions (RMDs) beginning at age 73.
Most individuals with tax-deferred retirement accounts, such as 401(k) plans and traditional IRAs, are required to make annual withdrawals known as required minimum distributions (RMDs). These distributions represent the smallest amount of money retirees must withdraw from their accounts each year. According to Nasdaq Markets, these withdrawals must generally begin at age 73.
The Motley Fool reports that RMD rules apply to account holders and beneficiaries, though they do not apply to Roth accounts while the original owner is alive. While subsequent distributions must be made by December 31 each year, the first RMD can be postponed until April 1. Any investment gains and contributions are subject to income tax when the funds are withdrawn.
Brief written by urgent.news from Nasdaq Markets, Motley Fool — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.
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