This Mistake Could Cost You a Large Chunk of Your Retirement Savings
If you saved well for your senior years by consistently funding an IRA or 401(k), you're probably quite appreciative of that money now that you're actually retired and using it. But the last thing you want to do is give up a huge chunk of your savings for no good reason. And if you neglect to take your required minimum distribution, or RMD, you'll wind up doing just that.
As you're probably aware, the money you've invested in your IRA or 401(k) gets to enjoy some pretty favorable tax treatment while it's in there. With a traditional IRA or 401(k), any gains in your account are tax-deferred, and you don't pay the IRS anything until you take withdrawals from your plan. With a Roth IRA or 401(k), gains in your account are tax-free, and you pay no taxes on withdrawals.
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Source Fool.com
