If you've been saving in a traditional 401(k) or IRA, you've probably heard of Required Minimum Distributions or RMDs. These are withdrawals you're required to take every year after you turn 73. It's a way for the Internal Revenue Service to get paid back for all that tax-free income you've saved over the years.
While there are strategies to avoid and reduce RMDs, for many retirees, it's just a part of life once you hit 73. But that doesn't mean it's one of those things you shouldn't give too much thought to. After all, your RMDs are treated as ordinary income, which means you have to pay taxes on your withdrawals.
