“Is there a way, with their permission, that I can oversee these funds at least until they are a bit older?” (Photo subjects are models.) - Getty Images/iStockphoto Dear Quentin, My college-age kids are inheriting $150,000 each, mostly from a 401(k) so the money is taxable. I am still going to pay for college, so this money is likely to be saved for the purchase of homes in 10 years or so. My thought is they should start withdrawing it from the 401(k) now while they have little or no income and taxes wil ...

Core Points - Traditional IRAs and 401(k) plans allow investment of pre-tax dollars, with tax liabilities deferred until withdrawals are made in retirement [1] - Required Minimum Distributions (RMDs) are mandatory withdrawals from tax-deferred retirement accounts, which must begin at a certain age [2] Summary by Sections RMD Changes - The Secure 2.0 Act increased the age for starting RMDs from 72 to 73 for individuals born on or after January 1, 1951 [4] - The age thresholds for RMDs are as follows: - Before July 1, 1949: 70 1/2 - July 1, 1949, to December 31, 1950: 72 - January 1, 1951, to December 31, 1959: 73 - After December 31, 1959: 75 [5] RMD Compliance - RMDs must be completed by December 31 each year, with the first RMD allowed to be delayed until April 1 of the following year [6] - Failure to withdraw the required amount incurs a penalty of 25% of the amount not withdrawn, although this penalty can be reduced [6]