This news is about Required Minimum Distributions (RMDs), which are rules for taking money out of your retirement savings account. It's important to understand these rules so you can plan for your future. RMDs help ensure you use your retirement money wisely and pay taxes on it.
- RMDs are the minimum amount you must withdraw from retirement accounts after a certain age (usually 73).
- The amount depends on your account balance and your age.
- Taking money out early can affect your future RMDs.
- Converting some savings to a Roth IRA might help reduce or avoid RMDs.
| Age | Example Account Balance | First Year RMD (with early withdrawals) | First Year RMD (without early withdrawals) |
|---|---|---|---|
| 73 | $272,871 | $10,297 | $32,418 |
