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For example, say you have two IRAs, one with a $5,000 RMD and one with a $7,000 RMD. You could take $12,000 from one, $6,000 from each, or any combination you like as long as you withdraw at least ...
Under the 4% rule, retirees should withdraw 4% of their savings each year during a 30-year time frame. Presumably subsequent withdrawals at the 4% rate account for inflation.
Failure to make an RMD on time can cost you up to 25% of the amount you were supposed to withdraw, and you'll still have to make the withdrawal and pay the taxes anyway. Here are three common ...
So in the case of two 401(k)s, one with a $4,000 RMD and one with a $6,000 RMD, your only choice to avoid the penalty would be to withdraw at least $4,000 from the first and at least $6,000 from ...
4 Ways to Use Your Required Minimum Distribution (RMD) Strategically in Retirement. James Brumley, The Motley Fool. October 21, 2024 at 8:40 AM.
This year you’d need to withdraw $18,248 ($500,000 / 27.4). As I’ve mentioned, you can withdraw more, but you can’t apply an excess toward the RMD requirement for future years.
Correcting the mistake within two years can reduce the penalty from 25% to 10%, but it's best to avoid it entirely. 2. Only withdrawing funds from one type of account
Don't fall into the same trap.