Stay Wealthy Retirement Podcast RMDs Unpacked: The Math Behind Your Required Distributions (and Tax Strategy)
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Aug 21, 2025 Discover how Required Minimum Distributions (RMDs) might require hefty withdrawals from your retirement savings. Uncover the surprising differences in life expectancy predictions between the IRS and Social Security. Learn the method behind RMD calculations and why you should plan strategically before hitting age 73. Get insights into using RMDs for a dynamic withdrawal strategy and explore effective tax planning tips to keep more of your hard-earned money in your pocket. It's essential advice for optimizing your retirement!
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RMDs Don't Force Overspending
- Required minimum distributions (RMDs) cannot make you outlive your money because you don't have to spend the withdrawn funds.
- You can reinvest RMDs into a taxable brokerage account to maintain your long-term plan.
RMD Rates Accelerate With Age
- RMD rates start low in your early 70s and gradually accelerate, reaching over 15% by age 100.
- The IRS computes these rates using distribution periods from the Uniform Lifetime Table tied to life expectancy.
IRS Uses Conservative Life Expectancies
- The IRS Uniform Lifetime Table assumes much longer life expectancies than Social Security tables show.
- That difference exists because the IRS approximates joint life expectancy for an owner and a spouse up to ten years younger.