How Much Is the Required Minimum Distribution if You Have $500,000 in Your Retirement Account?

Key Points Required minimum distributions (RMDs) begin the year someone turns 73 years old. RMDs are based on your age and account value at the end of the previous year. The initial penalty for a missed RMD is 25% of the amount that wasn't withdrawn. The $23,760 Social Security bonus most retirees completely overlook › One of the main appeals of using retirement accounts like 401(k)s and traditional IRAs is the tax break you receive. With both accounts, your contributions are deducted from your ...