How Required Minimum Distributions (RMDs) Work in Retirement

Learn how RMDs work for Oklahoma retirees, when they start, and how to reduce their tax impact.

Required Minimum Distributions (RMDs) are withdrawals the IRS requires from retirement accounts like IRAs and 401(k)s. For Oklahomans, RMDs can mean higher taxes if not planned for properly. Understanding the rules is key to keeping more of your money.

When Do RMDs Start?

As of 2025, RMDs begin at age 73. Retirees must withdraw a set amount each year, based on account balances and life expectancy.

How Are RMDs Calculated?

The IRS provides a formula using your account balance and life expectancy table. For example, a $500,000 IRA at age 73 may require a withdrawal of about $18,900.

Tax Implications

• Withdrawals are taxed as ordinary income
• May push retirees into higher tax brackets
• Can increase Medicare premiums

Strategies to Reduce RMD Impact

• Roth conversions before RMD age
• Qualified Charitable Distributions (QCDs)
• Coordinating withdrawals across accounts

Anchor’s Role

Anchor Financial Group models RMD scenarios for Oklahoma retirees, reducing taxes and extending retirement savings.

RMDs are unavoidable—but taxes don’t have to be overwhelming. Anchor helps Oklahomans plan smarter withdrawals.

Plan your RMD strategy today

See Post: https://myanchorgroup.com/the-ultimate-guide-to-retirement-planning-in-oklahoma-tax-smart-strategies-for-a-secure-future/