How Much Is the Required Minimum Distribution (RMD) if You Have $750,000 in Your Retirement Account?

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Stefon Walters, The Motley Fool

Wed, Apr 2, 2025, 8:25 AM 2 min read

Although status accounts similar 401(k)s and accepted IRAs springiness you a taxation interruption by lowering your taxable income, that doesn't mean you're wide of taxes completely. Instead, you're liable for paying taxes connected your withdrawals successful retirement.

To forestall situations successful which idiosyncratic doesn't marque immoderate withdrawals to debar taxes successful retirement, the IRS has required minimum distributions (RMDs) that statesman the twelvemonth you crook 73.

The magnitude of your RMD depends connected a fewer factors, including the size of your status account. To spot it successful action, let's locomotion done the RMD for idiosyncratic with $750,000 successful their status account.

There are 3 steps to calculating your RMD:

Find your relationship equilibrium astatine the extremity of the erstwhile year.
Look for the beingness expectancy origin (LEF) corresponding to your property and marital presumption (the Internal Revenue Service (IRS) provides these numbers).
Divide your relationship worth by your LEF.

Below are the RMDs for idiosyncratic azygous with $750,000 successful a status relationship arsenic of the extremity of 2024:

Age

Life Expectancy Factor

Required Minimum Distribution connected $750,000

73	26.5	$28,301
74	25.5	$29,412
75	24.6	$30,489
76	23.7	$31,646
77	22.9	$32,754
78	22.0	$34,091
79	21.1	$35,545
80	20.2	$37,128

Data source: IRS and writer calculations. RMDs rounded to the nearest dollar.

Skipping your RMD could mean facing a punishment of 25% of the magnitude you failed to withdraw. If the mistake is corrected wrong 2 years of the missed deadline, the punishment volition beryllium reduced to 10%.

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