From Nasdaq: 2025-05-03 10:15:00

• Using retirement accounts like 401(k)s and traditional IRAs is a great way to save for retirement and get a tax break. However, taxes will be due on withdrawals in retirement. Skipping withdrawals can lead to IRS-required minimum distributions (RMDs), which depend on age and account balance. Failing to take RMDs can result in penalties. It’s important to stay up to date on RMD obligations to avoid penalties. Spreading out RMD withdrawals evenly can help reduce risks during market volatility and uncertainty for retirees.
• For those wondering when to take RMDs, there’s no right or wrong time as long as it’s done before the end of the year. May could be a good month for withdrawals if needed or to avoid a year-end rush. However, considering market volatility, it may be wise to spread out RMDs evenly throughout the year. Maximizing Social Security benefits could provide an additional boost to retirement income.

Read more at Nasdaq: Is Taking Your Required Minimum Distribution (RMD) in May a Good Idea?