Keeping funds in a retirement account, such as a 401(k) or individual retirement account (IRA), is a smart way to benefit from compound interest. The longer you go without withdrawing, the more opportunity your funds have to grow.
Once you reach a certain age, however, you may have to take required minimum distributions (RMDs). These often begin at age 73, though holders of workplace-based plans may qualify to delay RMDs until retirement.
