Required minimum distribution

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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The minimum amount that the IRS requires must be withdrawn each year from all tax-advantaged retirement plans starting in the calendar year following the year in which the plan holder reaches age 70-1/2.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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
If the decedent died before RMD payments began, RMD amounts will be based on either a life expectancy rule or a five-year rule [IRC section 401(a)(9)(B)(ii-iii)].
[Saudi Arabia] is a major focus for RMD looking ahead in terms of opportunities.
RMD Kwikform has evolved its 3D capabilities and designed solutions to automate highly realistic rendered 3D models, using an in-house developed visualisation tool, LocusEye.
Fortunately, there is an exception that can allow these clients to defer their 401(k) RMDs until retirement if certain requirements are satisfied--but it's important that clients understand the rules, as the exception does not apply to all accounts and penalties for missed RMDs can be daunting.
If a participant’s spouse is 10 or more years younger than the participant and is the sole beneficiary, the participant may use the IRS’ Joint Life and Last Survivor Expectancy table to determine the RMD.
Ahmed Awaly of RMD Kwikform comments: "The overall design process was very complicated as the project was divided into several sub-projects, each with its own team and challenges.
RMD Board has set its sights on opening plants in India, China, Turkey, Russia, Brazil and the US - in seven years.
When the full amount of an RMD is not taken, the penalty is 50 percent of the amount you didn't withdraw.
RMD received two Phase II grants of around USD1m each for the Eddy Current Technology and Ultra-Pure Scintillators.
This is especially true if the client is planning to use the annuity as a tool for simplifying his or her IRA required minimum distribution (RMD) obligations.
His first RMD will be for 2017, based on his December 31, 2016, IRA balance.