This RMD Mistake Could Cost You Big Time

A lot of people prefer to save for retirement in a traditional IRA or 401(k) because contributions to these accounts are made on a pre-tax basis. And during your peak earning years especially, that tax break can be nice.But there's a big drawback to housing your savings in a traditional retirement plan, as opposed to a Roth account. Not only will your withdrawals during retirement be taxable, but you'll also be subject to required minimum distributions, or RMDs, once you turn 73 (or 75, depending on your year of birth).Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool