Required minimum distribution (RMD)

The minimum amount that the IRS requires must be withdrawn each year from all tax-advantaged retirement plans starting in the calendar year following the year in which the plan holder reaches age 70-1/2. Roth IRAs are exempt from this rule.

Required Minimum Distribution

The amount that an IRA must begin to distribute to an annuitant by the age of 70.5 or the date of retirement, whichever comes later. The required minimum distribution may or may not be taxable, depending on the type of IRA. The amount of the minimum required distribution is determined by the value of the IRA, the length of time the annuitant has contributed, and the amount of contributions.

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References in periodicals archive

If the IRA owner or plan participant died before he or she began taking required minimum distributions, you can generally elect to distribute the entire interest in the IRA or plan within five years of the owner's or participant's death.

Retirement Q&A: What are my options if I inherit an IRA or benefit from an employer-sponsored plan?

(8) The amount of the required minimum distribution is determined based upon the IRA owner's life expectancy.

Roth IRA conversions: benefits and planning opportunities

To begin with, even at age 71, there is no required minimum distribution on the tax-free (Roth) account, so overall RMDs go down.

Tax diversification provides economic benefits

The distribution also counts towards the required minimum distribution.

It pays to give: save taxes on charitable distributions from your IRA

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