What's the required minimum distribution from a $100,000 retirement account?
Summary
When you turn 73, you must start taking money out of your retirement accounts, called required minimum distributions (RMDs). For a $100,000 account, the amount you must withdraw increases with age and you have to pay taxes on the money you take out.Key Facts
- RMDs generally begin at age 73 for retirement accounts like 401(k)s or IRAs.
- The amount to withdraw is based on dividing your account balance by a life expectancy number from IRS tables.
- For example, at age 73, the RMD from $100,000 is about $3,774; by age 83, it grows to about $5,650 annually.
- The life expectancy factor used in the calculation gets smaller each year, causing RMD amounts to rise.
- Money withdrawn via RMDs is taxed because it was saved in tax-deferred accounts.
- Many Americans are far from the retirement savings they consider comfortable; the average worker has less than $1,000 saved.
- Precious metals like gold and silver can help protect retirement savings but should make up only a small part of a portfolio.
- Gold and silver do not provide income but may hold or increase value when other investments drop.
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