On the Hook for RMDs in Retirement? 2 Big Mistakes That Could Cost You.
Steer clear of these blunders to avoid unwanted repercussions.
Overview
The nice thing about saving for retirement in a traditional IRA or 401(k)is getting to contribute on a pre-tax basis. If you're a decent earner in a higher tax bracket for much of your career, that tax break could be invaluable
On the flipside, once you turn 73 or 75, depending on your year of birth, you'll be forced to take required minimum distributions, or RMDs, from one of these accounts. And those could create a tax headache if you aren't careful.
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Originally published at www.fool.com.
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