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The minimum amount that the IRS requires must be withdrawn each year from all tax-advantaged retirement plans starting in the calendar year following the year in which the plan holder reaches age 70-1/2.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

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.
References in periodicals archive ?
Fill two needs with one deed by applying some art to taking required minimum distributions from retirement accounts.
Traditional IRAs impose required minimum distributions that you must take once you reach age 70 1/2.
Currently, beneficiaries have the option of taking an inherited IRA via a lump sum or through stretching, which allows them to take required minimum distributions based on their life expectancy.
These distributions are called required minimum distributions (RMDs) and are based on annuity tables.
Under the new law, taxpayers who must begin taking required minimum distributions from an IRA at age 70.
Your beneficiaries will have required minimum distributions (RMDs) from the inherited IRA, and those distributions probably will be taxable.
With an HSA paired with an HDHP, employees may put aside money each year for health care, yet take no required minimum distributions (RMDs) from those accounts, and the savings can remain invested and continue to grow.
Yes, by doing so, the client will pay higher taxes, but he said it makes sense because "when you start taking Social Security, you'll have lower Social Security taxes, and you will have lower required minimum distributions because you've taken out" of the IRA or 401(k) first.
Currently, with traditional IRAs and qualified retirement plans, individuals typically must begin taking required minimum distributions (RMDs) no later than age 70 A'.
Jeffrey Brown, University of Illinois at Urbana-Champaign and NBER; James Poterba, MIT and NBER; and David Richardson, TIAA-CREF, "Do Required Minimum Distributions Constrain Household Behavior?
More than half (57 percent) do not know that 70V2 is the age at which required minimum distributions from traditional IRAs and 401 (k) plans must begin.
Required minimum distributions are minimum amounts that a retirement-plan account owner must withdraw annually starting with the year that he or she reaches 70 1/2 years of age or, if later, the year in which he or she retires.

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