Retirement plan withdrawals: An essential guide

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Answers to key questions about when and how you can take money out of your IRA and 401(k) and what taxes you could face.
After years or even decades of diligently funding your retirement accounts, you're looking to withdraw all or some of that money. Depending on your age and what you intend to use the funds for — and whether your assets are in an IRA or 401(k) and whether the account is traditional or a Roth — the tax treatment of your withdrawal can quickly become complicated. Debra Greenberg, director, Investment Solutions & Personal Retirement, Bank of America, answers common questions about when, why and how you can withdraw funds from your retirement accounts.

Next steps

Footnote  1 Effective January 1, 2024, RMDs are no longer required for Roth 401(k) accounts during the participant's lifetime. If you first turn 72 on or after January 1, 2023, the required beginning date for RMDs is April 1 of the year after you turn age 73. Different rules for commencing RMDs may apply if you were already age 72 before January 1, 2023. Please consult with your tax advisor regarding your specific situation.

Footnote  2 For a missed RMD prior to 2023, the excise tax is 50%.

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.