But how much do you need to remove from your IRA to satisfy the IRS’ requirement? Your broker or IRA’s custodian should have supplied you with all the necessary information, although you’ll want to use the IRS’ RMD calculation worksheet to come up with the right figure for your age; the older you are, the bigger it is.<\/p>\n
Here’s the required minimum distribution on $500,000 worth of retirement savings that’s subject to RMD rules.<\/p>\n
Age 73: $18,867.92
\nAge 75: $20,325.20
\nAge 80: $24,752.48
\nAge 85: $31,250.00
\nAge 90: $40,983.61<\/p>\n
Just remember that not all retirement accounts require distributions. Roth IRAs<\/a>, for instance, are exempt from RMD rules. And, if you’re still working at this age, you’re also not required to take minimum distributions from your workplace’s 401(k)<\/a> plan (unless you own more than 5% of the company you work for).<\/p>\n Image source: Getty Images.<\/p>\n There are also options for combining the values of multiple retirement accounts to determine your RMD. For example, you can combine the value of all your ordinary\/traditional IRA accounts but then take your total distribution from just one. Ditto for 403(b) accounts (although for RMD purposes you can’t combine these two different account types).<\/p>\n This flexibility doesn’t apply to 401(k) accounts, however, if you happen to own more than one from a former employer; you must calculate and take an RMD for each one of these accounts.<\/p>\n Finally, bear in mind that while there’s a required minimum, this doesn’t mean you can’t take out more than the minimum. You just won’t want to do so if at all possible, since doing so raises your tax liability.<\/p>\n","protected":false},"excerpt":{"rendered":"The more you have and the older you are, the bigger your taxable withdrawal. It’s not too late…\n","protected":false},"author":2,"featured_media":197654,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[138,246,111,139,69,244,245],"class_list":{"0":"post-197653","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-finance","10":"tag-new-zealand","11":"tag-newzealand","12":"tag-nz","13":"tag-personal-finance","14":"tag-personalfinance"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/197653","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=197653"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/197653\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/197654"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=197653"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=197653"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=197653"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}<\/p>\n