Required Minimum Distribution

Required minimum distributions (RMD) might sound like a good thing, but it means that the nest egg you have been putting away for decades in your 401(k) or IRA has to start having money withdrawn. The IRS forces you to take money out, whether you need or not. The taxes that were deferred are now the taxes that need to be paid. Fortunately, you only have to pay on the portion that is removed from the retirement account.