ComputeResults
Annual rates of return can vary significantly and will depend upon your asset allocation and other variables. Generally, higher target returns carry greater risk.
You can generally begin taking penalty-free distributions from IRAs if you are at least 59-1/2 years old. For a traditional IRA, you must begin taking distributions by April 1 following the year in which you turn 73. Roth IRAs do not require you to take distributions during your lifetime, but Roth rules may require you to wait at least five years after creating the account before beginning distributions.
The maximum contribution is $7,000 per individual under age 50 and $8,000 for those aged 50 and older.
| Married, filing jointly |
Head of Household |
Single filers |
Tax Rate |
| $0 - $23,200 |
$0 -
$16,550 |
$0 -
$11,600 |
10% |
| $23,201 - $94,300 |
$16,551 - $63,100 |
$11,601 - $47,150 |
12% |
| $94,301 - $201,050 |
$63,101 - $100,500 |
$47,151 - $100,525 |
22% |
| $201,051 - $383,900 |
$100,501 - $191,950 |
$100,526 - $191,950 |
24% |
| $383,901 - $487,450 |
$191,951 - $243,700 |
$191,951 - $243,725 |
32% |
| $487,451 - $731,200 |
$243,701 - $609,350 |
$242,726 - $609,350 |
35% |
| More than $731,200 |
More than $609,350 |
More than $609,350 |
37% |
Source: IRS, 2024 tax rate schedules.
If the IRA holder turns 73 this year, he or she can defer the first distribution until April 1 of the next year. If the holder is older, he or she would normally be required to take an RMD before December 31 of this year. RMDs are considered taxable income for the year in which they are taken.
|
