This "Stealth" RMD Strategy Could Cost You
Don't assume it's a smart move.
Overview
If you have money in a traditional IRA or 401(k), required minimum distributions (RMDs) are something you need to plan for carefully. RMDs are due each year by Dec. 31. And if you miss that deadline, you could face a steep 25% penalty on whatever sum you don't remove.
One strategy you may be considering is deferring your first RMD. You're allowed to put off your initial RMD to April 1 of the year after you turn 73 or 75, depending on your RMD age.
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Details
Source
Originally published at www.fool.com.
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