As you near retirement or after you’ve left the workforce for good, take time to understand how Required Minimum Distributions (RMDs) work. That way, you'll avoid steep tax penalties and fines, and keep more of your hard-earned savings.
Beyond that, calculating RMDs can help you strategize gifting or spending to reduce estate taxes (especially valuable if you're approaching the $15 million federal estate tax exemption) and also guide your future investment strategy.
