6 Rules Every Investor Should Know About Retirement RMDs

Laura Adams, MBA

While it might be a while before you begin taking distributions from a retirement account, there are important rules you should factor into your planning, no matter your age. Find out what retirement RMDs are, how they affect different types of retirement accounts, and 6 distribution rules every investor should know.

ys, “I’ve been a weekly Money Girl listener for many years and appreciate the thoroughness of your podcast. I was reading today that Roth 401k accounts are subject to RMDs while Roth IRAs are not. I thought all Roth accounts were exempt from RMDs, what have I missed?”

Thanks for being a loyal podcast listener and for your question, Ray. RMDs, or required minimum distributions, on retirement accounts can be confusing. If you don’t follow them, either because you don’t want to comply or you just don’t know the rules, the penalty is surprisingly high.

While RMD rules don’t affect you until later in life, young people should get familiar with them, too. The policies for taking distributions from retirement accounts should be factored into your planning to build wealth, no matter your age.

In this post, I’ll explain what RMDs are and how they affect different types of retirement accounts. You’ll learn six of the most important rules about taking distributions that everyone should know.

Read Full Article