There always seem to be tons of articles about maximizing the amount money in your 401ks and your IRAs, but there doesn't seem to be much talk about what happens to those accounts when you get to 59.5.
I understand that the income tax on these accounts has been deferred, and when a person reaches retirement age they have to pay the income tax. How does that work? If you've saved 2 million dollars, do you take it all out and pay taxes as though you made 2 million dollars that year? Does the account have to be closed when you reach retirement, or can you leave the account open and take an "income" out of it every year?