What's the required minimum distribution from a $400,000 retirement account?
Retirees with $400,000 in retirement savings must navigate required minimum distributions (RMDs) starting at age 73. The amount to withdraw annually increases with age and can significantly impact taxes and Medicare premiums. Understanding these requirements is crucial to avoid penalties and manage retirement funds effectively.
- ▪Required minimum distributions (RMDs) must begin at age 73 for most tax-deferred retirement accounts.
- ▪For a $400,000 balance, the RMD starts at approximately $15,094 at age 73 and increases with age.
- ▪Missing an RMD can result in a penalty of up to 25% of the amount that should have been withdrawn.
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MoneyWatch: Managing Your Money What's the required minimum distribution from a $400,000 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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