Retirement Withdrawals and Required Distributions

Pretax retirement distributions are generally taxable. After-tax basis and qualifying Roth withdrawals can change the result. Early withdrawals can also trigger an additional tax unless an exception applies.

RMD requirements depend on the type of account and your circumstances. The usual calculation uses a prior year-end balance and an IRS distribution factor. Do not assume you can combine every account’s requirements or roll over an RMD.

Beneficiary rules can differ from an owner’s rules and can impose annual distributions, a deadline to empty the account, or both. Confirm the applicable schedule with the custodian. Review withholding or estimated payments as withdrawals change.

Two retirees withdrawing the same dollar amount may owe different tax if one holds pretax funds and the other receives a qualified Roth distribution. Account labels and basis records matter as much as the withdrawal amount.

• Prior year-end account statements
• Forms 1099-R and basis records
• Beneficiary and inheritance details
• Distribution confirmations and withholding elections

• IRS required minimum distribution FAQs
• IRS Publication 590-B

• Traditional vs. Roth IRA: Understanding the Tax Differences
• After the Death of a Loved One