When Tax Bites Back: The Unseen Consequences of RMDs on Retirees As America's baby boomer generation approaches retirement age, a significant tax burden awaits them.
Mandatory withdrawals from workplace retirement plans, known as required minimum distributions (RMDs), can have devastating consequences for retirees.
The average American aged 65 69 has $251,400 saved in their 401(k) and $267,900 in workplace plans, according to Fidelity. These nest eggs will soon be subject to the IRS's rules.