As the title says, how does this work ? Does one simply receive what they put in? For example, if a person has 100k when they retire at 67, does the retirement company choose an estimated year of death and divide the 100k by the number of years? Are there levels, for example if you retire with 100k, you receive this amount a month? Are distributions distributed like social security?
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It is like a bank account. You decide how much and when you want to take money out. Only thing to know is once you hit a certain age, usually 72 or 73, you have to take a required minimum distribution. This is kind of like what you were thinking, the IRS has public tables for any given age. You take your balance from prior year end, divide it by that number, and that’s the minimum you have to take out (because the IRS wants its money). After that you can take as much or as little as you want.
Before 72/73 and after age 59.5, it is totally up to you. Roth IRAs are the same except they don’t have required minimum distributions, so you can die without taking a dime out if you want. Popular way to pass assets down to your kids in a tax efficient way.
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