A required minimum distribution is the amount of money you must withdraw from your retirement account by April 1 of the year following the year you turn 73 (or 75, if you were born in 1960 or later). Even if you would prefer to allow the entirety of your retirement account to continue to grow or don’t need the money to pay bills, you’re required to take it. Failure to do so can lead to a penalty of 25% on the amount that should have been withdrawn.
Like most things, it may take a little time to familiarize yourself with RMDs. However, the more practice you have, the easier it will become. Still, it’s easy to make a mistake inadvertently. Here are four of the most common.
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