Lower Taxes on Required Minimum Distributions

Congress has given retirees more time to take required distributions from their retirement accounts. But postponing withdrawals could cost you a lot of money.

David and Jackie Bayer of Pompano Beach, Fla.
(Image credit: Photo by Marty Lee)

There’s a reason college students pull all-nighters and millions of older adults wait until April 14 to file their taxes. When confronted with a task that’s necessary but joyless, it’s human nature to put it off until the last minute. 

For some retirees, taking withdrawals from their retirement savings accounts is another chore that falls to the bottom of their to-do list. Investments in traditional IRAs and 401(k) plans grow tax-deferred, but you must pay taxes when you take the money out. In addition, tapping a nest egg you’ve diligently nurtured for decades elicits fears that you’ll run out of money in your later years. 

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Sandra Block
Senior Editor, Kiplinger's Personal Finance

Block joined Kiplinger in June 2012 from USA Today, where she was a reporter and personal finance columnist for more than 15 years. Prior to that, she worked for the Akron Beacon-Journal and Dow Jones Newswires. In 1993, she was a Knight-Bagehot fellow in economics and business journalism at the Columbia University Graduate School of Journalism. She has a BA in communications from Bethany College in Bethany, W.Va.