Required Minimum Distributions (RMDs) begin at age 73 in 2024, applying to most retirement accounts but not affecting Roth IRAs during the account holder’s lifetime.
The IRS has updated life expectancy tables in 2024, resulting in lower RMDs, which allows retirees to keep more of their money invested longer.
To calculate your RMD, divide the balance of your retirement account by the life expectancy factor from IRS tables, simplifying the process of determining withdrawals.
RMDs are taxed as regular income, so retirees should plan for potential tax implications, which could push them into a higher tax bracket.
#retirement-planning #required-minimum-distributions #tax-implications #irs-regulations #investment-strategy
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