Tax‑deferred retirement accounts like traditional IRAs and 401(k)s allow contributions to grow without immediate taxation. But the IRS eventually requires withdrawals to ensure taxes are paid. These withdrawals, called Required Minimum Distributions (RMDs), begin at age 73 for those born between 1951 and 1959. Seniors must withdraw a calculated minimum amount each year, based on account balances and life expectancy tables. The deadline is December 31, except for the first RMD, which can be delayed until April 1 of the following year.
