There’s a three-letter acronym that scares the life out of retirees – and it is not IRS.
It’s RMD and it stands for required mandatory distribution, the minimum amount of money you must withdraw from your retirement accounts each year once you reach 73.
If you were like me and millions of others who put money into an employer-sponsored 401(k) or an IRA, you received a tax break on a portion of your income at the time with a deferral of taxes owed. But when you withdraw it in retirement, it will be time to pay the piper, aka the Internal Revenue Service.
I will try to put some of your fears to rest here.
This post originally appeared at U.S. News & World Report.