Do required minimum distributions (RMDs) apply to my 401(k)?

Yes — traditional 401(k)s are subject to required minimum distributions, the amounts the IRS forces you to start withdrawing so the tax-deferred money doesn't grow untouched forever. Under SECURE 2.0, the starting age is now 73 (rising to 75 in 2033), and you take an RMD each year based on your balance and life expectancy. Missing one triggers a penalty — now 25%, reduced to 10% if corrected promptly. One useful exception: if you're still working at 73 and don't own 5% or more of the company, you can usually delay RMDs from that current employer's 401(k) until you retire. Roth 401(k)s no longer have RMDs during the owner's lifetime as of 2024, matching Roth IRAs. Plan withdrawals so RMDs don't spike your tax bracket. Estimate yours at wealthserene.com/tools/rmd-calculator.