401k

AbeFatu · ‎January 24, 2022

Hi;

I withdraw extra for covid. Can I reduce my MRD this year?

Abe Fatu

MinhT1 · ‎January 24, 2022

No, you cannot reduce your Required Minimum Distribution this year just because you have withdrawn more in previous years.

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Opus 17 · ‎January 24, 2022

Your RMD, or required minimum distribution, is the amount that you must withdraw during the year based on your life expectancy and the size of the account. It is not a single specific transaction. For example, if your RMD is $15,000, and you have made two withdrawals of $10,000 each for living expenses, you have already met the requirement; you are not required to withdraw an additional $15,000 as a single step.

Your RMD for 2022 will be based on your age and the account balance at the end of the year. It doesn’t matter how much you withdrew in the past or why you withdrew it, it is simply based on your age and account balance.