FAQs About RMDs: Don't Blow Your Required Minimum Distributions
Required minimum distributions are annual withdrawals people generally are forced to start taking from tax-deferred retirement accounts, such as traditional IRAs and 401(k)s, once they reach age 70½. The reasoning behind RMDs is simple: Your retirement savings have been sheltered from taxes for years, perhaps even decades, and Uncle Sam eventually wants his cut. The IRS can impose hefty penalties if you don't take your RMDs in the right amounts, from the right accounts and at the right times.
It can be tricky to , but don't panic. Read on to learn the answers to some commonly asked questions about RMDs, courtesy of the experts at Kiplinger's Retirement Report and
