Required minimum distribution (RMD) rules are
pretty strict. If you don't want to face a hefty fine, you must withdraw a certain
amount of money every year from tax-deferred retirement plans like 401(k)s and traditional IRAs after you reach age
70½.The withdrawals you make are then
taxed as ordinary income. Not following these rules can lead to a penalty equal
to 50% of the amount that should have been withdrawn, plus regular tax.