Skip to content
Auburn Auto Group (banner)
Home » Valentine's Day » How to stretch your retirement money after turning 72

How to stretch your retirement money after turning 72

Once you turn 72, you are required to withdraw a certain amount each year.

retirement plan

But how can you make that money stretch?

Finger Lakes Partners (Billboard)

Social Security: Some recipients to see checks worth $4,194 TODAY

Required minimum distribution

Required minimum distribution is also known as RMD. Once you reach 72, you are required to make a withdrawal annually. That withdrawal must fit certain criteria to be considered an RMD. Read more about it here.

Because you are required to take out money after 72, many people take more than the minimum and end up depleting their savings. However, there are ways to make it stretch.

RMDs are determined by dividing the most recent year-end balance of each account by your life expectancy factor. The amount required to withdraw each year typically increases as your life expectancy declines.

Some of the most important rules about RMDs to remember are:

  • If you don’t take the required amount from your account, you will face a penalty of 50%
  • You cannot keep funds in a traditional IRA indefinitely
  • A qualified charitable distribution counts towards your RMD
  • RMDs during a particular year aren’t eligible for rollover treatment

Social Security: Claiming benefits when married

Categories: News

Top