Your Retirement Accounts Are Not Worth What You Think — RMDs, Taxes & Medicare
The number on your IRA statement is not what you get to spend. Federal income taxes reduce every traditional 401(k) and IRA withdrawal. Required Minimum Distributions — which begin at 73 whether you need the money or not — can push your income high enough to trigger Medicare surcharges that cost a couple thousands of dollars a year on top of taxes. Here’s how it all works, in plain language.