An IRA tax hack for retirees 70 and over

Account holders over the age of 70 1/2 are subject to RMDs — required minimum distributions — which is the amount they’re obligated to withdraw from their tax-deferred retirement accounts and pay taxes on. “The government wants its money back,” retirement expert Ed Slott tells Yahoo Finance. “It’s their way of saying, ‘We gave you this tax break all these years, but now time’s up, we want our money back and you have to start taking the money out.”