What Are Required Minimum Distributions (RMD) & When do They Start?
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What Are Required Minimum Distributions (RMD) & When do They Start?
When you turn 73, you must begin taking annual RMDs from your IRA and 401(k) accounts. And therefore, paying taxes on the dollars you have previously put into your account pre-tax. However, if you are still working and you own less than 5% of the company you are working for, you do not have to take RMDs from your 401(k) yet. You will still need to take them from your IRA. Roth IRAs are not subject to RMDs. The amount of your RMD will change each year based upon your age and the balance of your account at the previous year end.
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