Quote:
Originally Posted by bigdog
Will be retiring this coming Spring, currently working at 68, drawing a Salary and taking Social Security for last 3 years.
At 70 years old the Federal Gov. requires you to start drawing down on your 401k, IRA, Etc investments.
Is there a formula on how much one has to draw each year ?
Is it based on current income, or on the total money saved in investments ?
I would like to keep as much money in investments after retirement, but the Feds want their money when you turn 70 ! Feedback and scenarios greatly appreciated !
On an unrelated subject... very sad day.... just put the boat into winter storage !
Thanks,
Bigdog
|
The IRS requires an RMD (required minimum distribution) from your IRA's and 401k's. The annual minimum is roughly 10% of the current value of the plan when the distribution is made. As stated above this must begin in the year you turn 70.5. The taxable amount is determined by your financial institution and is based on the portion of the distribution that has not been previously taxed.