Required Minimum Distribution
An RMD is the minimum amount the IRS requires to be withdrawn annually from most tax-deferred retirement accounts, generally beginning at age 73.
RMDs are taxed as ordinary income and can push a retiree into a higher bracket, trigger IRMAA, or increase the taxable portion of Social Security.
The IRS eventually forces you to start taking money out of pre-tax accounts and paying tax on it — whether you need the income that year or not.
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