Don't Leave the IRS a $1.7 Billion Tip: Set Up These RMD Reminders Now

One of the best parts of a 401(k) or traditional IRA is that you can deduct contributions from your taxable income in the year you make them (but traditional IRAs have criteria that must be met). It's a way to save money on taxes and proactively save and invest for retirement.However, in exchange for this tax break, the IRS expects its money on the back end, so it taxes withdrawals from those accounts in retirement. To ensure it happens, the IRS has put required minimum distributions (RMDs) in place. Unfortunately, not everyone follows the RMD rules -- and it's often costly.Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool