Saving for retirement is important, and tens of millions of Americans use tax-deferred accounts like IRAs and 401(k)s to build up a nest egg for their golden years. Traditional IRAs and 401(k)s offer a trade-off: reductions in tax now in exchange for agreeing to pay taxes on withdrawals in retirement. Moreover, under current law, retirees can’t just leave their money in their retirement accounts forever, as rules require you to take required minimum distributions once you reach a certain age or else pay a huge penalty.
However, President Trump is expected to issue an executive order today that could lead to a future change in these rules. That would potentially loosen the requirements for required minimum distributions, granting retirees more flexibility in deciding when and how much of their nest egg they take out