From Investing.com: 2025-05-08 06:30:00

Required Minimum Distributions (RMDs) are mandatory withdrawals from retirement accounts like IRAs and 401(k)s to ensure taxes are paid on savings. Failing to take RMDs can result in a 50% penalty. RMDs start at age 73, and calculating them involves your account balance and life expectancy. Strategies to manage RMDs include Roth IRA conversions, Qualified Charitable Distributions, strategic withdrawals, and considering after-tax accounts. Planning ahead with a financial advisor can help forecast RMDs and minimize tax implications. Roth IRAs don’t have RMDs, but missed RMDs incur penalties and are taxed as income.



Read more at Investing.com: How to Navigate Required Minimum Distributions and Minimize Taxes in Retirement