Saving an adequate amount of money for retirement can be both challenging and time-consuming. Once the funds are safely secured in a 401(k) or traditional IRA, though, retirees will need to move on to the next inevitable step in this process: determining how much money they will actually have to take out of these tax-deferred accounts when the time comes. And it won't necessarily be negotiable.

Certain laws dictate how much money retirees will need to take out of these accounts, whether they need or even want to touch the funds. These required minimum distributions (RMDs) will need to be managed strategically, as they will come with tax implications. And in today's economic climate, marked by rising inflation, elevated interest rates and higher everyday costs, seniors and retirees will want to be as prepared as possible in advance. That starts with understanding what their annual RMD will look like. 

For an account worth $200,000, for example, this could mean withdrawing a five-figure sum of money each year, depending on the age of the account holder. So, what will the required minimum distribution from a $200,000 retirement account actually look like? Below, we'll do the math that retirees need to know if they have an account of this size to withdraw from.

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What's the required minimum distribution from a $200,000 retirement account?

Retirees will typically be expected to start drawing from their retirement account once they've reached age 73. The annual amount that they'll be required to take out is calculated using a simple formula: the balance divided by the life expectancy factor. That factor changes based on the age of the retiree, as can be seen by reviewing the IRS Uniform Lifetime table. This means the older you are, the more you'll be expected to withdraw. 

Here's what that looks like for a $200,000 retirement account calculated at four different ages:

• Age 73: $7,547 annually ($200,000 ÷ 26.5)
• Age 75: $8,130 annually ($200,000 ÷ 24.6)
• Age 77: $8,733 annually ($200,000 ÷ 22.9)
• Age 79: $9,479 annually ($200,000 ÷ 21.1)

Retirees will also be expected to withdraw more money as they age, with the annual required minimum distribution rising by a few hundred dollars in each of these examples. Their tax bill will change alongside these distributions, too, so it's important to account for that in advance.

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Should gold play a role in your retirement portfolio?

A gold investment won't produce income in retirement, at least not over an extended period. So it may not make sense to invest in, then, right? Not necessarily. 

While you'll generally only be able to turn a profit with gold by buying low and selling at an elevated price, the precious metal can still play a critical role in your retirement portfolio. Thanks to its ability to maintain its value and even rise in price during turbulent economic times, many would still recommend a gold investment now as it can offset the volatility stocks, bonds and real estate may otherwise endure. 

Depending on your age and investing horizon, however, the amount you invest in gold will vary. While many recommend capping gold at a maximum of 10% of your portfolio, that amount may be lower for seniors and retirees. In turn, you may want to consider speaking with a representative from a gold investing company who can advise you on the safe ways to still get invested while allowing your other investments to still perform as intended.

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The bottom line

The RMD on a $200,000 retirement account can be as low as $7,500 or higher than $9,400, approximately, depending on the age of the account holder. With tax implications to account for, however, no matter what the distribution amount is, retirees should start planning their next moves now. And that may include the incorporation of gold in their broader retirement plans, which can both offset the volatility felt with other investments by keeping a retirement portfolio steady. Or it may mean revising their savings strategy to exploit today's still-elevated interest rate landscape. Just don't wait too long to act, either, as strategic retirement moves made now can pay off for years or even decades still to come.