If you are over age 73 and choose not to take your RMD, you will be penalized by the IRS. The amount not withdrawn will be subject to a 25% tax. Before the SECURE 2.0 Act was passed in 2022, this was a 50% penalty.8According to the IRS, the penalty drops to 10% if the "RMD...
Regarding your observation that it "appears that the annuity payout rates exceed the minimum amounts per the IRS RMD tables," you are again right. As a general rule, you'll find that by converting a portion of your IRA/401k sum lump into an immediate annuity you always receive more money...
RMDs are calculated by dividing the balance of an IRA or retirement plan account as of December 31 of the previous year by a life expectancy factor published by the IRS. Three life expectancy tables are used to calculate RMDs and apply them under different situations. Table I Single Life Ex...
(Again, we've created an easy-to-use tool that computes RMDs from traditional IRAs for you.) Fortunately, thanks to changes to the life expectancy tables, most seniors will have smaller RMDs for 2022 when compared to previous years. 6 RMD Changes We Could See This Year If you have more...