RMDs must be taken by those aged 73+

Starting this year, individuals aged 73 and older must take required minimum distributions (RMDs) from their IRAs, except for Roth accounts. The amount depends on account value and age, with larger withdrawals required as one gets older. RMDs can be taken as cash or as "in-kind" distributions of assets, allowing retirees to avoid selling investments. The timing of the RMD can impact the amount withdrawn, as account values fluctuate throughout the year. Some retirees may reinvest RMDs back into IRAs if they have earned income. However, any reinvested funds will be subject to taxes, unlike funds within the IRA. Retirees should consider tax implications when deciding how to reinvest their RMDs.