I am currently 59 years old and have a question about how the RMD works.
When I retire, hopefully by 63, I plan to roll my 401K over into an IRA. I have a decent amount of investments outside of my 401K, combined with social security, that should sustain me until 70.
Theoretically, if I have enough money in the IRA in dividend stocks and I'm getting an annual 4% return in dividends, I was thinking I could take the 4% dividend return every year and not have to pay capital gains, never touch the principal, and satisfy the RMD.
Is this accurate on how the RMD works or am I missing something here?
