This Retirement Plan Rule Could Cause Your Social Security Benefits to Get Taxed

There are plenty of good reasons to save for retirement in a traditional IRA or 401(k) plan. These plans allow you to contribute money tax-free, so your IRS burden is eased during your working years. IRAs and 401(k)s also let your money grow tax-free. In fact, taxes only come into play once you start taking withdrawals as a senior.

But there's one drawback to traditional retirement plans -- they impose required minimum distributions, or RMDs. And not only do RMDs impact your general taxes, but they could also make it so your Social Security benefits are subject to taxes as well.

RMDs have been around for a long time, though the age at which they kick in recently changed for the better. It used to be that RMDs came into play starting at age 70 1/2, but now, you don't have to worry about them until you turn 72.

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Source Fool.com