In this episode of The Ameriwealth Talk Show, Karan Murugesu walks through retirement withdrawals in a clear, easy-to-understand way. The focus is on what happens when money comes out of retirement accounts, how withdrawals are taxed, when penalties apply, and how the rules differ across various account types.
This episode is designed for anyone who has been saving for retirement and wants clarity around what happens next not complexity.
• What happens when you withdraw money from retirement accounts
• How withdrawals are taxed
• When early withdrawal penalties apply
• Differences between IRAs, 401(k)s, 403(b)s, and 457 plans
• Roth IRA ordering rules and five-year rules explained simply
• Required Minimum Distributions (RMDs) and when they begin
• The still-working exception and the 5% owner rule
• How SEP IRAs and SIMPLE IRAs are treated
• Planning tools such as QLACs and Qualified Charitable Distributions (QCDs)
Set aside fifteen minutes this week. Write down every retirement account you have, note whether each is with a current or former employer, and write down your age alongside 59½, 70½, and your RMD age (73 or 75).
Click here to download the Episode 5 Retirement Withdrawal Worksheet.
Sources & References
IRS – Retirement Plans & IRAs: Required Minimum Distributions
https://www.irs.gov/retirement-plans/retirement-plan-and-ira-required-minimum-distributions-faqs
IRS – Exceptions to Early Withdrawal Penalties
https://www.irs.gov/taxtopics/tc558
IRS – Qualified Charitable Distributions (QCDs)
https://www.irs.gov/newsroom/seniors-can-reduce-their-tax-burden-by-donating-to-charity-through-their-ira
IRS – SECURE 2.0 Act RMD Updates
https://www.irs.gov/retirement-plans/secure-2-0-act
IRS – QLAC Rules and Limits
https://www.irs.gov/retirement-plans/qualified-longevity-annuity-contracts
Fidelity – Rule of 55 Overview
https://www.fidelity.com/learning-center/personal-finance/what-is-rule-of-55