I turned 73 this year and so I’m required to withdraw a Required Minimum Distribution (RMD) on my retirement accounts.
In one of those accounts the number I had calculated (12/31/24 balance / age factor for 73) was exactly the same number determined by the financial company in which I have that money invested…. So far, so good…. But when they withdrew that amount, they told me that a very small amount of the money in that withdrawal, a little over 2% of the total amount withdrawn, was AFTER TAX money…. Based on something I must have paid tax on close to 40 years ago….
My thought would be that the IRS would want me to withdraw a little bit more money such that the total amount withdrawn, 100% in BEFORE TAX dollars, would hit that total amount calculated as the required RMD. That they would want ALL OF IT to be BEFORE TAX $$’s because my thought is the IRS is wanting TAX on the calculated amount…. But if some of the calculated amount contains some AFTER TAX $$’s, they would not be getting the full amount they seek in the RMD….
But all that I’ve been able to read or hear from folks who seem to know is that all I have to do is withdraw the full calculated amount and that’s it, even if a part of that withdrawn amount is NOT going to net the government any additional taxes????
Can you help??? Am I good with just withdrawing the calculated amount even if some if that amount is AFTER TAX money??? Or do I need to take more out until I hit the calculated amount with 100% PRE TAX $$’s???? thanks….
