Minimum required distribution

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Minimum Required Distribution

The amount that an IRA must begin to distribute to an annuitant by the age of 70.5 or the age of retirement, whichever is greater. The minimum required 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.

Minimum required distribution (MRD).

A minimum required distribution is the smallest amount you must take each year from your retirement savings plan once you've reached the mandatory withdrawal age.

There are MRDs for 401(k) plans, 403(b) plans, and traditional IRAs, and the maximum age you can reach before they start is usually 70 1/2. If you take less than the required minimum, you owe a 50% penalty on the amount you should have taken.

You calculate your MRD by dividing your account balance at the end of your plan's fiscal year -- often December 31 -- by a distribution period based on your life expectancy. If your spouse is your beneficiary and more than ten years younger than you are, you can use a longer distribution period than you can in all other circumstances.

References in periodicals archive ?
The study showed that measuring MRD just twice during remission induction therapy -- at day 19 and day 46 -- rather than multiple times during the more than two years of treatment was sufficient to guide treatment of most pediatric ALL patients.
Measurements by this approach prior to treatment and then at regular intervals during therapy allow for a highly sensitive and numerically accurate assessment of MRD levels.
The distributions are not subject to income tax, however, and the MRD rules do not apply to Roth accounts.
This increase in the factor has the effect of reducing the MRD to $45,872 per year.
To demonstrate the potential of MRD for high-throughput clinical screening and metabolic profiling, we constructed a simulated test-run of 1000 urine samples processed by a prototype MRD instrument developed jointly by our laboratory and Varian Inc.
The value of MRD in making treatment decisions in ALL is now well established," said David Miklos, M.
Several retrospective and prospective studies indicate that analysis of MRD has prognostic value.
A conduit trust does not accumulate any income; each year's MRD is distributed to the beneficiary.
Current law prescribes substantial penalties for taxpayers who are age 70 1/2 and do not take the MRD from their retirement plans.
Prices of land with inconvenient transport access are seen to drop further, and the difference in prices between popular and unpopular real estate is expected to widen in the future, MRD officials said.