Think 401(k) and IRA RMDs Work the Same? There Are Actually 2 Big Differences.
Understanding the required minimum distributions rules could help you keep your tax bill down.
Overview
Traditional 401(k)s and IRAs both have required minimum distributions (RMDs) beginning in the year you turn 73, but that doesn't necessarily mean you have to take money from every such account you own each year. There are unique rules governing each type of retirement account, and understanding them can help you hold onto more of your hard-earned savings.
There are two key RMD rules that can be especially tricky because they differ between 401(k)s and IRAs. Here's a closer look at how they work.
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Details
Source
Originally published at www.fool.com.
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