Over the past several decades, you’ve been saving for retirement with one clear goal — to ensure your golden years are financially stable. Now that the countdown to your last day on the clock is ticking down, you’re faced with a major decision: How will you convert your savings into a reliable stream of income? For You: 4 Retirement Expenses Boomers Didn’t Plan For — but Should Have Find Out: 5 Clever Ways Retirees Are Earning Up To $1K Per Month From Home For some retirees, the answer involves taking sys ...

RMD Essentials - The taxes on funds in tax-deferred accounts like 401(k) are delayed, not avoided, and income taxes are due upon withdrawal [4] - Required Minimum Distributions (RMDs) start at age 73, preventing indefinite tax-free growth of retirement savings [4] RMD Rules - RMD rules are strict, and withdrawals before RMDs do not reduce future RMD amounts [5] - Excess withdrawals after RMDs have begun also do not directly affect future RMD calculations [5] Impact of Withdrawals - Taking withdrawals now or later in excess of RMD amounts can lower the account balance, which in turn reduces future RMDs [6] - Withdrawals are taxed as normal income regardless of when they are taken, making early withdrawals potentially beneficial if a higher tax bracket is anticipated post-retirement [6] Additional RMD Strategies - Working after retirement may allow for the delay of RMDs, applicable only to current employer's 401(k) plans [7] - RMDs must still be taken from 401(k) plans from previous employers, and stopping work triggers the need to start RMDs [7]