"Reaching 72 with $900,000 in tax-deferred retirement accounts means navigating required minimum distributions (RMDs) while preserving portfolio longevity. This requires intentional planning around withdrawals, taxes, and asset allocation. A recent Reddit discussion highlighted how RMDs are often less burdensome than feared, with one poster noting that even with a $2 million portfolio, only about 25% of total wealth gets taxed by age 80."
"Managing your effective tax rate while meeting RMD requirements is critical. At 72, the IRS requires you to withdraw approximately $32,847 annually (your balance divided by 27.4, per the Uniform Lifetime Table). This represents 3.65% of your portfolio. The tax bite matters more than the withdrawal percentage. For 2026, married couples filing jointly face a 12% federal rate on taxable income between $23,850 and $96,950, jumping to 22% above that threshold."
At 72 with $900,000 in tax-deferred accounts, required minimum distributions (RMDs) drive mandatory withdrawals of roughly $32,847 annually (balance divided by 27.4, about 3.65%). Managing effective tax rates is critical because RMDs can push taxable income into higher brackets; for 2026 married couples face 12% up to $96,950 and 22% above that, with Social Security and the $32,200 standard deduction affecting outcomes. Moderate real returns (around 4%) typically preserve portfolio value into the 80s, and 5–6% growth can increase balances during the first RMD decade. Strategies include income-focused allocation to cover RMDs, Roth conversions, tax-loss harvesting, charitable giving, and timing distributions to reduce taxes.
Read at 24/7 Wall St.
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