Required Minimum Distributions (RMDs) can trip up even the most careful savers. If you have a traditional IRA, 401(k), or similar retirement account, you can’t avoid them forever. The IRS requires you to start taking RMDs at a certain age, and the rules are strict. Mistakes can lead to big penalties, higher taxes, and even missed opportunities for your heirs. Understanding RMDs isn’t just about following the law—it’s about protecting your money. Here are the most common and costly mistakes people make with RMDs, and how you can avoid them.
