What Required Minimum Distributions mean for your retirement years

SPRINGFIELD, Mo. Required Minimum Distributions are certain amounts of money you must take out of your retirement savings every year after the age of 72.

Lots of accounts are affected by these requirements including your 401(k) plans, Roth 401(k) plans, profit-sharing plans, and individual retirement accounts (or IRAs).

While you have to start taking them out at age 72, there are still some important deadlines to keep in mind. You can wait to withdraw the required amount the following April after your 72nd birthday. After your first distribution, though, you are required to take out the money by December 31.

The amount you have to withdraw has to do with how long life expectancy is. There are many table resources online to help you figure this out, but one of the most user-friendly is Bankrate's.

These tables change every year as life expectancy does. Here’s a link to try the calculator out for yourself: https://www.bankrate.com/calculators/retirement/ira-minimum-distribution-calculator-tool.aspx

If saving for retirement is something you’ve not been thinking about you should start now.

Susan Humbard, founder of Advanced Plan Designs, says that we really aren’t planning for the end of our lives soon enough, and sometimes we forget we can’t work forever. Even if you can’t afford to put much into a retirement plan, taking small steps can make a big difference.

“What we recommend is pick a number you know you can do,” she told KY3. “So even if that’s one percent. Start with one percent and then each year bump it up another one percent.”

“Because that little bitty one percent bump is not going to {break you],” she adds. “It’s a cup of coffee each week.”