3 Important Questions to Ask About RMDs
There might have been a time in your life when you were busy learning all about retirement savings accounts and retirement annuities, but do you ever recall learning the details of required minimum distributions (RMDs)? As long as you have a tax-deferred retirement plan and live to be 73 (or 75 if you were born in 1960 or later), you'll be required to take an annual RMD. Think of it as the government's way to ensure you pay taxes on the funds you were able to invest tax-free.
Whether you're not old enough to take an RMD yet or you've been making withdrawals (and paying taxes) for years, you may have questions. Here are three of the most essential.
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Source Fool.com
