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When Waiting for Required Minimum Distributions Is a Big Mistake

When Waiting for Required Minimum Distributions Is a Big Mistake

Traditional IRAs allow retirement savers to put money in a tax-favored account and defer any taxation on income or gains until they make withdrawals from the account. Tax deferral is a good thing, and that's why many people wait until the age at which the IRS forces them to start taking required minimum distributions (RMDs) from their retirement accounts. Currently, that age is 72, but in many cases, waiting that long actually doesn't lead to the best result for retirees.