One of the most costly mistakes retirees can make is not knowing the rules regarding Required Minimum Distributions (RMDs). The IRS has a set of specific rules that govern when retirees must take withdrawals from tax-deferred retirement accounts. Missing a single deadline can result in significant penalties (we’re talking 25% excise tax on the amount you failed to withdraw). It can be easy to overlook rule changes, account-specific requirements, or tax consequences, but you don’t want to pay unnecessary fees. So, it’s worth reviewing these six RMD rules to make sure your retirement plan stays on track.
