Josh Scandlen Podcast

With a Roth there are NO required minimum distributions (RMDs). This means you can allow your Roth to grow for as long as you are breathing without ever having to take any money out.  A traditional IRA, 401k, 403B or TSP all require at age 70½ you begin taking a percentage out of the account in order to pay tax on it.  What if you don’t need the money? Doesn’t matter. The IRS needs it more and they will get it starting when you turn 70 ½.   Let’s say you are 70 years old and have $100,000 in your traditional IRA.  Your RMD will be $3,649.63.  How did I get that? Just take your account balance from the end of the previous year, find your age at the end of this year on the IRS table below and divide that corresponding number into your account balance.  Now, I can hear some saying “Josh, paying tax on $3,649.63 is no big deal. I’m in the 12% bracket so it will only cost me around $400 in taxes.” I agree. The first few years of RMDs are so small you probably won’t even notice the tax