What's Happening
5 minutes ago

Why Intel Stock Is Soaring Today

foolfool.com
12 minutes ago

A Closer Look at Delta Air Lines's Options Market Dynamics

benzingabenzinga.com
12 minutes ago

Cava Group Unusual Options Activity For February 11

benzingabenzinga.com
12 minutes ago

Biogen's Options Frenzy: What You Need to Know

benzingabenzinga.com
12 minutes ago

$100 Invested In This Stock 5 Years Ago Would Be Worth This Much Today

benzingabenzinga.com
24 minutes ago

Options Corner: Smart Money Is In Fierce Tug-Of-War Ahead Of Robinhood Earnings

benzingabenzinga.com
25 minutes ago

Reddit Q4 Earnings Preview: Can Recently Public Company Beat Estimates Four Straight Quarters?

benzingabenzinga.com
26 minutes ago

Intel Shares Are Up Today: What's Going On?

benzingabenzinga.com
27 minutes ago

Boeing Has Spent $2 Billion On The Starliner Debacle As Musk's SpaceX Set To Rescue The Stranded Astronauts

benzingabenzinga.com
27 minutes ago

What the Options Market Tells Us About Praxis Precision Medicine

benzingabenzinga.com
27 minutes ago

Take-Two Interactive's Options Frenzy: What You Need to Know

benzingabenzinga.com
27 minutes ago

Decoding IREN's Options Activity: What's the Big Picture?

benzingabenzinga.com
27 minutes ago

Here's How Much You Would Have Made Owning Microsoft Stock In The Last 10 Years

benzingabenzinga.com
29 minutes ago

Travelers Expects $1.7 Billion In Catastrophe Losses From California Wildfires

benzingabenzinga.com
35 minutes ago

Bitcoin, Ethereum, XRP, Dogecoin Slide Lower: 'Final Move Down Before The Recovery,' Trader Says

benzingabenzinga.com
37 minutes ago

Regenxbio's Gene Therapy Outlook Dims As Rival Treatments Gain Ground, Goldman Sachs Warns

benzingabenzinga.com
40 minutes ago

Why Archer Aviation Stock Is Plummeting Today

foolfool.com
42 minutes ago

Pfizer's Options Frenzy: What You Need to Know

benzingabenzinga.com
42 minutes ago

A Closer Look at Celestica's Options Market Dynamics

benzingabenzinga.com
42 minutes ago

A Closer Look at Dollar Tree's Options Market Dynamics

benzingabenzinga.com

How Much Is the Required Minimum Distribution (RMD) if You Have $750,000 in Your Retirement Account?

Will you be 73 (or older) in 2025? And, do you have any money in a traditional IRA, 401(k), or other workplace retirement account? If you answered yes to both questions, you’ll soon need to take at least some of your money out of these accounts. The IRS requires these withdrawals, and they’re called required minimum distributions, or RMDs.

But how much is the annual RMD? It depends on the account’s previous year-end balance and your age.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. See the 10 stocks »

Calculating your RMD

The good news is RMD rules aren’t too heavy-handed as they allow retirees to keep most of their money in a tax-sheltered account in any given year. But for perspective, let’s assume you had $750,000 in your IRA at the end of last year. Here are the RMDs for that account based on your age in 2025.

Age Distribution Period Factor

Percentage of IRA’s Year-End Value

RMD On $750,000 Retirement Account
73 26.5 3.77% $28,301.89
75 24.6 4.07% $30,487.80
80 20.2 4.95% $37,128.71
85 16.0 6.25% $46,875.00
90 12.2 8.20% $61,475.41
95 8.9 11.24% $84,269.66

Table by author. Calculations based on IRS Uniform Lifetime Tables.

As you can see, a retiree turning 73 years old this year would need to withdraw at least $28,301.89 from their account. That figure is calculated by dividing the account balance by your distribution period factor at 73, which is 26.5. The percentage of your account the annual RMD represents increases with age until reaching 50% if you’re lucky enough to live to 120.

A few other rules to consider

Although your very first RMD can be completed as late as April 1 of the year after you turn 73, all required distributions thereafter should be made by the end of the calendar year to avoid penalties.

There are some exceptions to RMD rules too. Namely, Roth IRA accounts aren’t subject to RMDs. Most people still contributing to a 401(k) plan also don’t need to take withdrawals from that account, even if they’re 73 or older.

The $22,924 Social Security bonus most retirees completely overlook

If you’re like most Americans, you’re a few years (or more) behind on your retirement savings. But a handful of little-known “Social Security secrets” could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $22,924 more… each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we’re all after. Simply click here to discover how to learn more about these strategies.

View the “Social Security secrets” »

The Motley Fool has a disclosure policy.

Related Posts

Image source: Getty Images The best credit cards have a lot of perks — cash back, travel rewards, purchase protection, and more. But what happens

Social Security benefits for spouses are a common source of confusion. MassMutual reports that 25% of surveyed adults near retirement age were unaware that spouses

Image source: Getty Images Most people pay their credit card bill once a month, but you’re allowed to pay more frequently. Technically you can pay

The latest cover of Time magazine shows Elon Musk sitting at the historic Resolute Desk in the Oval Office with the U.S. flag and the