With the year winding down, older investors with money sitting in ordinary IRAs may soon need to withdraw at least some of it. It’s called a required minimum distribution, or RMD.
What’s the minimum? It depends on your age and the total market value of your retirement accounts as of the end of calendar 2024. Here’s the required minimum distribution on $50,000 worth of retirement savings at a range of ages, beginning with age 73, which is when RMD rules first kick in.
The size of the required — and taxable — distribution grows as you age, maxing out at 50% of the prior year’s ending balance for anyone lucky enough to reach the age of 120.