How Pre-73 Withdrawals Influence RMD Calculations

Wednesday, 7 August 2024, 11:00

When planning for retirement, it's crucial to understand how withdrawals from pre-tax IRA or 401(k) accounts made before age 73 are treated in regard to Required Minimum Distributions (RMDs). Withdrawals do impact your overall balance but do not affect the starting age for RMDs, which is set at 73. Consequently, pre-73 withdrawals may reduce your account balance, but RMDs are calculated based on the account balance at the onset of RMDs. Be sure to consider these factors in your retirement planning.

Yahoo Finance — How Pre-73 Withdrawals Influence RMD Calculations

Impact of Pre-73 Withdrawals on RMDs

When approaching retirement, particularly at age 70, many individuals like Luis wonder how their financial decisions will affect their future RMDs.

Do Withdrawals Count Towards RMD Calculations?

The age of 73 is critical for calculating RMDs.
Withdrawals do not influence the starting age for RMDs.
However, those withdrawals reduce your overall account balance.

Ultimately, understanding these guidelines will help you navigate your retirement income strategies effectively.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.

Impact of Pre-73 Withdrawals on RMDs

Do Withdrawals Count Towards RMD Calculations?

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