With the year drawing to a close, individuals with pre-tax retirement accounts should familiarize themselves with the required minimum distribution (RMD) rules.

Retirement accounts like traditional IRAs and 401(k) plans let you deduct contributions from taxable income in the present, allowing you to save tax-deferred dollars, in exchange for paying income tax on the contributions (and any gains) in the future.

However, withdrawals cannot be delayed indefinitely. Tax-deferred retirement accounts are subject to required minimum distributions (RMDs), meaning account holders are obligated to make sufficient withdrawals each year upon reaching a certain age.

Like most topics in personal finance, RMDs can be complicated, especially because the passage of the Secure 2.0 Act in 2022 introduced

See Full Page