Required Minimum Distributions (RMDs) must begin at age 73 (or 75 for those born in 1960 or later) for tax-deferred retirement plans. RMDs won’t affect Social Security benefits but could impact gross income and taxation. RMDs apply to various retirement plans including 401(k), 403(b), and IRAs. You can choose to take RMDs as a lump sum or in multiple payments throughout the year. Missing an RMD deadline could result in a 25% penalty, but this can be reduced to 10% if corrected within two years. Even if you don’t need the funds, you must take your RMD annually to avoid penalties.

Read more at Nasdaq: 3 Important Questions to Ask About RMDs