![]() ![]() You don’t pay taxes on the money in your IRA when you put it in. After all, it’s your money, so why can’t you take it out of your account at your own pace? The answer to this question is the same as the answer to many questions when it comes to financial matters: taxes. You may find yourself wondering why there is a required minimum distribution for your IRA. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now. Note that the above RMD table also doesn’t apply to you if you have a spouse who is the sole beneficiary of your IRA and who is more than 10 years younger than you. This only applies to traditional IRAs, not Roth IRAs. The IRS has other tables for account holders and beneficiaries of retirement funds whose spouses are much younger. Here is the RMD table for 2023, based on the Uniform Lifetime Table of the IRS, which is the most widely used table (It is Table 3 on page 65). Retirees may without penalty withdraw more than the RMD. Failure to do so means a penalty of 50% of the required RMD. After that your RMDs must be taken by December 31 of each year. Therefore, your first RMD must be taken by April 1 of the year after which you turn 72 (73 in 2023). The SECURE 2.0 Act, though, raised the age for RMDs to 73 for those who turn 72 in 2023. The age for withdrawing from retirement accounts was increased in 2020 to 72 from 70.5. IRA Required Minimum Distribution (RMD) Table for 2023 If you have questions about managing your money in retirement, then consider talking to a financial advisor. The RMD table the IRS provides can help you figure out how much you should be withdrawing. This guide will take you through how to use the RMD table, explain what it means for your retirement and discuss what happens if you don’t hit the required minimum distribution for a given year. Once you reach a certain age, though, you’ll have to start taking a minimum amount out of your account each year, called a required minimum distribution (RMD). ![]() ![]() SmartAsset: IRA Required Minimum Distribution (RMD) Table for 2022Īn individual retirement account, more commonly referred to as an IRA, is a good place to save for your retirement. ![]()
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