Required Minimum Distributions from $300,000 Retirement Account Start at $11,320 at Age 73

Millions of American workers spend much of their careers building retirement funds. High inflation, rising interest rates and elevated everyday costs in recent years have made this goal more pressing. While saving hundreds of thousands of dollars for retirement is possible, retirees face another key issue: mandatory withdrawals from these accounts after reaching a certain age.

Federal law requires withdrawals from tax-deferred accounts once people hit that age, even if they do not need the money or have other funds available. Knowing the required minimum distribution, or RMD, ahead of time is essential. The amount depends on age and account balance. Many aim to save $1 million or more, but accounts often hold less, such as $300,000. Those balances still face the same rules.

Retirees must start taking RMDs from accounts like 401(k)s and traditional IRAs at age 73 under current rules. The calculation is simple: account balance divided by a life expectancy factor from the IRS Uniform Lifetime Table. For a $300,000 account, the RMDs are:

Age 73: $11,320 annually ($300,000 ÷ 26.5)

Age 75: $12,195 annually ($300,000 ÷ 24.6)

Age 77: $13,100 ($300,000 ÷ 22.9)

Age 79: $14,218 ($300,000 ÷ 21.1)

Withdrawals increase with age. Retirees should plan for these amounts and the taxes owed on them.

Diversifying a retirement portfolio can help manage such requirements. Gold has served as one option, limited to no more than 10% of the portfolio or less depending on investment time horizon. It holds value and often rises during inflation, as seen recently when prices surged amid decades-high inflation. Options include bullion, stocks and gold IRAs.