Once you turn 73, you are required to begin taking Required Minimum Distributions (RMDs) from your retirement accounts. The RMD amount is calculated based on your total account balance, age, and life expectancy factors. Individual accounts can have separate calculations, but you can aggregate RMDs across multiple IRAs. This ensures compliance with IRS regulations, and consulting with a financial advisor for proper execution is advised to avoid penalties.
The IRS will calculate your Required Minimum Distribution (RMD) based on your total account balances, age, life expectancy, and beneficiary life expectancies.
If you're 73 years old, with an account balance of $250,000, your RMD would be approximately $9,433.96, calculated by dividing the balance by your life expectancy factor.
#retirement-planning #required-minimum-distributions #financial-advice #irs-regulations #life-expectancy-factors
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