4 tips for managing your retirement account distributions

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Withdraw now or wait until later? How much should you take? How should you handle required minimum distributions (RMDs)? Consider these helpful insights.
All the money you've been putting away toward retirement — are you aware that you can't necessarily keep it all in your retirement accounts as long as you want? For example, you're typically obligated to begin withdrawals from your traditional IRAs and other qualified retirement plan accounts when you turn 73.Footnote 1 Once you begin taking these RMDs, you must take one every year.
Calculating RMDs can be tricky, especially if you have several retirement accounts. And you may be subject to an additional federal tax on the amount of missed or insufficient RMDs. But by taking the appropriate distributions at the right time, you'll potentially avoid problems and make the most of your retirement assets. To get an idea of how much you might need to withdraw, use our RMD Calculator.
One of the biggest mistakes people make with RMDs is thinking they know how much they need to withdraw.
— Kevin Brune,
Merrill Edge Self Directed Sales Management
Every financial situation is unique, so it might make sense to consult with a tax and/or legal advisor before making any decisions, as distributions may impact your taxes. Here are four tips to help ease the task.

Next steps

Footnote 1 Effective Jan. 1, 2023, the required beginning date for RMDs is Apr. 1 of the year after you turn age 73. You are required to take an RMD by Dec. 31 each year after that. If you delay your first RMD until April 1 in the year after you turn 73, you will be required to take two RMDs in that year. You may be subject to additional taxes if RMDs are missed. See your tax advisor regarding your specific situation.

Merrill, its affiliates, and financial advisors do not provide legal, tax, or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.