Core Points - The article discusses the calculation and planning of Required Minimum Distributions (RMDs) for retirement accounts, specifically for individuals turning 73 in 2027 [6][4][10] - It emphasizes the importance of understanding the life expectancy divisor from the IRS's Uniform Lifetime Table, which is crucial for determining RMD amounts [2][11] - The article highlights the flexibility in withdrawing RMDs from multiple IRAs, allowing for aggregated withdrawals from any single account or combination of accounts [13][12] RMD Calculation - To calculate RMD, divide the account balance as of December 31, 2026, by the life expectancy divisor; for example, a $1 million balance divided by 26.5 results in an RMD of approximately $37,736 [7][1] - RMDs must be taken by the end of the calendar year, with the option to defer the first RMD until April 1 of the following year, which could lead to two distributions in one year [9][10] Account Types and RMDs - Traditional IRAs, 401(k)s, 403(b)s, and other tax-deferred accounts are subject to RMDs, while Roth IRAs are not included in the calculation [3][6] - RMDs for 401(k) accounts must be taken from each account individually, unlike IRAs where the total RMD can be taken from any single account [14][13] Planning Considerations - The article suggests that retirees should consider their overall retirement income, including Social Security and pensions, when planning for RMDs [17] - It also notes that if retirement expenses exceed the RMD, additional withdrawals may be necessary to meet financial needs [12][17]

Retirement planning involves estimating how much money you’ll need when you retire and then developing a strategy for saving and investing your money. There’s no magic number, but the goal is to have enough income to live the life you want after you stop working. If you’re not sure how to start planning — or if you have been contributing money to retirement accounts and want to make the most of your savings — you’re in the right place. This step-by-step guide will provide a roadmap on how to save for ret ...