RMDs

Retirement Retired Fools
42

Hi @darrellquock,

When RMD’s start, they start at about 3.65% of your traditional assets as Dec 31 of the previous year. (They will vary based on individual circumstances.)

So, Yes, account size can be important.

For each $1MM of traditional assets, your RMD will be around $36,500. That would be added to your income. So a $5MM IRA and 401K total would nominally have an RMD total of $182,500.

If your traditional retirement assets are not very large, the issue would not be important.

The RMD percentage increases a little bit every year.

I suggest you just do the calc starting at 3.65% and see what it adds to your income.

Does that help you?

Gene
All holdings and some statistics on my Fool profile page
https://discussion.fool.com/u/gdett2/activity (Click Expand)

1 Like
43

The light bulb just clicked.

I get it now.

Say a 45 year old was able to accumulate 1 million.

at 75, which would be his/her RMD, the account would be worth 20 million if it grew at 10%

RMD for the 1st year would be 3.65% or $730,000…

That would surely put you in a higher tax bracket…

1 Like
44

And what a great problem that would be to have…

4 Likes