Answer: Required Minimum Distributions, or RMDs, are the minimum amount of money that individuals with certain retirement accounts, such as traditional IRAs and 401(k) plans, must withdraw from their accounts each year once they reach a certain age.

Answer: Generally, individuals are required to start taking RMDs by April 1 of the year following the year they turn 70 1/2. However, if you are still working and have a 401(k) plan with your current employer, you may be able to delay your RMDs until April 1 of the year following the year you retire, as long as you are not a 5% or greater owner of the company.

Answer: The amount of your RMD is calculated based on the balance of your retirement account(s) at the end of the previous year and your life expectancy. The IRS provides tables, called the Uniform Lifetime Table or the Joint Life and Last Survivor Expectancy Table, that can be used to determine the amount of your RMD.

Answer: If you fail to take your RMDs, or if you withdraw less than the required amount, you may be subject to a 50% penalty on the amount that should have been withdrawn. It is important to make sure you understand and fulfill your RMD obligations to avoid penalties.

Answer: Yes, there are several strategies that can help maximize retirement income with RMDs. One strategy is to consider delaying Social Security benefits until a later age, such as age 70, in order to receive a higher monthly benefit amount. Another strategy is to carefully manage your withdrawals from different retirement accounts to minimize taxes and maximize your overall income. Additionally, working with a financial advisor can help you develop a personalized plan that takes into account your specific financial goals and circumstances.