Pulling money out of your accounts does not feel natural because you spent all your time putting that money in there. Another reason people do not pull money out of their accounts is that they don't need it! Lastly, there's a fear of running out of money. Those are the three pain points for why people do not take their money out of accounts. When it comes to the Required Minimum Distribution, you need to understand that your retirement dollars will exit. They will either exit by your own design, they can exit by the force of the IRS (with a 50% penalty), or you let lawyers settle it. For most people, they should design a plan.
So, what has changed with Required Minimum Distributions? Going into the CARES act, you did not have to take the Required Minimum Distribution. Luckily, you get another year to delay. With the SECURE act, we have a limited distribution schedule – it's ten years. Nonetheless, you have to be careful that your thought process is solid. At the end of the ten years, the account needs to be empty. So, it’s time to make a plan!