US Guide Hub: US Retirement Guide

  Required Minimum Distributions (RMDs) are required annual withdrawals from certain tax-deferred retirement accounts. For many retirees, RMDs can increase taxable income even when the money is not needed for current spending. RMD planning is most useful before your required beginning date. A careful plan may include managing Traditional IRA and 401(k) balances, evaluating Roth conversions, considering charitable goals, and estimating the effect on Social Security taxation and Medicare premiums. For related planning topics, see Social Security federal tax rules , Medicare IRMAA income limits , and HSA retirement and Medicare rules . RMD rules affect Traditional IRAs and many workplace retirement plans. Key RMD Ages For people born from 1951 through 1959, the applicable RMD age is generally 73 . For people born in 1960 or later, the applicable RMD age is generally 75 . Your year of birth, account type, work sta...

Retirement planning does not end when you stop saving. You also need a plan for how to withdraw money from different accounts over time. Many retirees hold money in three different account types: taxable brokerage accounts, tax-deferred retirement accounts such as Traditional IRAs and Traditional 401(k)s, and Roth accounts. Each account can affect income taxes, capital gains, Medicare premiums, Social Security taxation, and future required minimum distributions. Important Note There is no single retirement withdrawal order that is best for every household. The right approach depends on your age, tax filing status, account balances, spending needs, Social Security, health insurance, Medicare, estate goals, and state taxes. 1. Understand the Three Main Retirement Income Buckets Before deciding which account to use first, identify how each account is taxed. Account Type Examples General Tax Treatment When Money Is Withdrawn ...