Will My Required Minimum Distributions Make Me Run Out of Money?
The benefit of saving for retirement in a traditional IRA or 401(k), as opposed to a Roth account, is getting a tax break on your contributions. And you have the potential to exempt quite a bit of income from taxes each year, especially if you're able to contribute the maximum to a 401(k).
The problem with traditional retirement plans, though, is that down the line, you're going to be forced to take withdrawals from your account known as required minimum distributions, or RMDs. RMDs kick in at age 73, though that age is 75 for anyone born in 1960 or later. And their purpose is to force savers to spend down much of their nest eggs in their lifetime rather than pass them on as inherited wealth.
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Source Fool.com
