Q: I have been taking my Required Minimum Distributions (RMD) for a few years now. I don’t have a crystal ball, but I do have a question about the timing of an annual RMD. Should it be taken when the value of my 403(b) is probably at its highest value during the year? Or should it be taken near its lowest value in the year?
A: As I’m sure you are aware, predicting short-term movements in the market is nearly impossible. With that being said, in a hypothetical situation it would be best to take your RMD when the value of your account is higher rather than lower. That way your withdrawal is a smaller percentage of your overall account.