What Is the Required Minimum Distribution (RMD) for a $600,000 Retirement Account?
Retirees with tax-deferred accounts should know when to take required minimum distributions (RMDs) and how to calculate the amount.
What Is the Required Minimum Distribution (RMD) for a $600,000 Retirement Account?
Overview
Tax-deferred accounts like traditional IRAs and 401(k) plans let workers reduce their taxable income (by saving pretax dollars) in the present in exchange for paying income tax on the contributions and any gains in the future.
However, the tax bill cannot be delayed indefinitely. At a certain age, individuals with tax-deferred investment accounts must start taking required minimum distributions (RMDs).
Details
Here's what you need to know about RMDs, including how to calculate the RMD withdrawal amount on a $600,000 retirement account.
Source
Originally published at www.fool.com.
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