If you’re a retiree, you likely know about (and are hopefully very familiar with) Required Minimum Distributions (RMDs). The IRS generally requires annual RMDs beginning at age 73 for many retirement accounts, with most distributions due by Dec. 31 after the first RMD year. These withdrawals from your retirement accounts not only impact your immediate finances, but they can also affect your taxes, Medicare premiums, Social Security, and even your overall retirement plan. Unfortunately, many retirees wait until the very last minute to take their distribution or miss opportunities to reduce the tax impact of those withdrawals. You must take action before December 31, or you could face hefty penalties. But before you start making any moves, make sure you’re not making any of these common RMD mistakes.
