Turning 73 in 2024? It's Time to Get Ready for Your First RMD.
The nice thing about saving for retirement in a traditional IRA or 401(k) is getting to enjoy a tax break on the money you contribute. But there's a downside.
At some point, the IRS is going to force you to start withdrawing from your retirement plan whether you want to or not. Those mandatory withdrawals are known as RMDs, or required minimum distributions, and failing to take them when you're supposed to could result in costly penalties.
Meanwhile, if you're turning 73 this year, it means you need to start thinking about your first RMD. That means not only figuring out when to withdraw the money from your account, but also how to plan from a tax perspective.
Source Fool.com
