Truth 7. Minimum required distributions

According to the 15th century English proverb, “All good things must come to an end.” Although tax deferral of the compounding value of traditional IRAs and traditional 401(k)s did not exist in 15th century England, this particular old English proverb certainly applies to both of these retirement savings vehicles.

Tax laws are written not merely to take your money but to also encourage certain activities and discourage other activities. Anything that permits you to put off paying income taxes is certain to be popular. So when the federal government wants to encourage us to save for our own retirement, making traditional IRAs and traditional 401(k)s tax deferred adds considerably to their popularity ...

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