Hi Reader,
Your RMD Could Cost You More Than You Think!
Required Minimum Distributions (RMDs) can have a bigger impact on your retirement than you might expect.
Here's why:
🏥 Higher Medicare Premiums: RMDs can increase your income enough to trigger higher Medicare Part B and Part D premiums.
💵 More Taxes on Social Security: Additional income from RMDs could cause up to 85% of your Social Security benefits to become taxable.
📈 Higher Income Taxes: Larger RMDs could push some of your income into a higher tax bracket.
How Much Could Your RMD Be?
At age 73, a $1 million traditional IRA would generally require a distribution of approximately $37,736 based on the IRS Uniform Lifetime Table.
And the percentage you're required to withdraw generally increases as you age.
Take a look at our charts to see how RMDs are calculated and how they could change over time.
📌 Coming Next: Strategies that may help reduce future RMDs and their tax consequences.
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David N. Waldrop, CFP®
Owner of Bridgeview Capital Advisors, Inc. a Registered Investment Advisor.
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