What's the minimum you're required to withdraw from a $750,000 retirement account?

A $750,000 retirement balance can feel like a reward after decades of disciplined saving, and in many ways, it is. That amount of retirement cash will cover years or decades of retirement expenses for the average retiree, especially after you factor in the monthly Social Security benefits most retirees receive. But what some retirees may not realize is that this account balance comes with certain stipulations if the money is sitting in a traditional IRA or 401(k). When your money is sitting in these types of accounts, the Internal Revenue Service (IRS) eventually requires you to withdraw a set amount every year.

And, the more you've saved for retirement, the more you're forced to take out annually. These withdrawal requirements, known as required minimum distributions (RMDs), are tied to your age rather than your circumstances, so they don't wait for a strong market or a low tax year to arrive. Every dollar you withdraw counts as ordinary income, which means a large distribution can raise your tax bill at the same time it drains your account, so when — and how much you take out — matters, sometimes more than it might seem.

How much are you required to withdraw each year if you have a $750,000 balance in your retirement account, though? And what else should you consider in terms of your retirement plans right now? That's what we'll examine below.

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What's the minimum you're required to withdraw from a $750,000 retirement account?

RMDs apply to most tax-deferred retirement accounts, including traditional IRAs and employer plans such as 401(k)s. Under current rules, account holders generally have to start taking them at age 73. The amount that's required is determined by a formula that divides your prior year-end balance by a life expectancy factor the IRS assigns:

• Account balance ÷ life expectancy factor = RMD

Drawing on the IRS Uniform Lifetime Table, which covers most account holders, here's how that plays out for a $750,000 balance:

• Age 73: With a life expectancy factor of 26.5, a $750,000 balance calls for an annual withdrawal of about $28,302.
• Age 75: As that life expectancy factor drops to 24.6, the required amount rises to roughly $30,488 each year.
• Age 80: At a life expectancy factor of 20.2, the minimum withdrawal requirement climbs to approximately $37,129 annually.

That increase is by design. As the factor falls each year, you're required to withdraw a bigger slice of the balance, even in a down market and even when a smaller distribution would make more sense for you.

The tax side of this equation deserves equal attention, though. Because withdrawals from traditional retirement accounts count as ordinary income, a distribution in the $28,000 to $37,000 range can push you into a higher bracket, increase the share of your Social Security benefits subject to tax and raise Medicare premiums — effects that can erode what the withdrawal is actually worth.

Coming up short carries a sharper risk. If you miss the full amount, you may face a penalty of up to 25% of the shortfall. IRA balances can usually be combined and satisfied from a single account, but 401(k)s generally must be handled plan by plan, a wrinkle worth planning around if you're juggling several accounts.

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Which high-yield retirement investment options make the most sense right now?

Meeting your RMD is only half the job. What you do with the proceeds — and with the rest of the portfolio — can matter just as much as the withdrawal itself. And, a few options, in particular, stand out right now:

High-yield savings and money market accounts 

For retirees who value liquidity and want to protect principal, high-yield savings accounts remain far more rewarding than they were a few years ago, with top yields still well above the national average. Money market accounts work similarly, often adding limited check-writing access to the mix. Neither exposes your cash to market swings, though, which makes them a practical home for the money you may need on short notice.

Annuities 

For retirees who are more worried about outliving their money than chasing growth, an annuity could be a smart option. This route can convert a lump sum of retirement cash into a predictable income stream, in some cases, for the remainder of your life. That certainty comes with trade-offs, though. The fees can be steep, the contracts are often hard to unwind and the income may not keep pace with inflation unless you pay extra to ensure it does. So, they tend to fit best as one piece of a broader plan.

Precious metals 

Precious metals like gold and silver have long served as a hedge against inflation and uncertainty, a role they've held through recent volatility. A modest allocation — many advisors suggest 5% to 10% — can add stability. The catch is that metals generate no income and physical holdings carry storage and insurance costs you won't see with paper assets.

The bottom line

The required minimum distributions tied to your retirement accounts aren't optional. That, in turn, means hefty minimum withdrawals are coming for anyone holding $750,000 in a traditional IRA or 401(k), starting at age 73. The yearly obligation runs from about $28,300 at 73 to more than $37,000 by 80, rising on schedule no matter what the market is doing. But satisfying the IRS is only the starting point. How you handle the income that follows — and position whatever's left — will do just as much to determine how far that $750,000 actually carries you.