Taking Your First RMD? Avoid This Costly Mistake.
Required minimum distributions, or RMDs, are one of those retirement rules many savers learn to tolerate. Once you turn 73 or 75, depending on your year of birth, you'll have to start taking withdrawals from a traditional retirement account like an IRA or 401(k).
You could decide to blow off your RMDs. But doing so generally means facing a 25% penalty on the money you fail to remove, which is clearly not ideal.
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Source Fool.com
