Sentences with phrase «withdrawals over your life expectancy»

Not exact matches

If you elect to use the life - expectancy method, you can stretch out the required withdrawals over a number of years and leave what's left in the account at your death to your heirs, who would then owe tax as they withdraw the money.

Because you're recalculating how much you should withdraw each year based not only on your assumed life expectancy, but also on your portfolio's year - end value, you're forced to raise or lower your withdrawals depending on how your investments performed over the prior year.

To make a long story short, all the IRS requires is that you start making withdrawals using «substantially equal periodic payments over your life expectancy;» and thus are not withdrawing «too much,» nor too little; and are always paying taxes on this income annually.