03-07-2025
- Business
- Wall Street Journal
The Best Way to Take RMDs From Your Retirement Accounts
As investors enter retirement, the U.S. government currently requires them to start taking required minimum distributions from their 401(k) and traditional individual retirement accounts at age 73. But which way is best to take those distributions?
Should one take money out at the end of each year so that it sits in the market as long as possible and earn the potential extra return that one can get by staying in the market? Or should one take money out at equal installments throughout the year to spread out exposure to market conditions? Or a hybrid strategy of both?
