How to Reduce the Impact of RMDs

Managing required minimum distributions is a key part of protecting retirement income and minimizing taxes.

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If you have a traditional IRA or 401(k), you’ve probably been working hard and saving diligently for years. But you can’t keep your funds invested as long as you want.

Uncle Sam will eventually take a cut in the form of required minimum distributions (RMDs).

What Is an RMD?

An RMD is a minimum amount that you must withdraw from tax-deferred accounts like traditional IRAs, 401(k)s, and 403(b)s each year beginning when you turn 73.