
Once you reach age 73, the law requires you to take distributions from your traditional IRAs, 401(k)'s, defined benefit plans, and most other types of retirement accounts, except for Roth accounts. If you don't take out the required minimum distribution (RMD), you will incur an excise tax of 25% of the amount you were supposed to withdraw. The penalty drops to 10% if you correct the mistake within two years or before having the tax assessed by the IRS if sooner.