Required Minimum Distribution - RMD
The amount that Traditional, SEP and SIMPLE IRA owners and qualified plan participants must begin distributing from their retirement accounts by April 1 following the year they reach age 70.5. RMD amounts must then be distributed each subsequent year.
Investopedia Commentary
These required minimum distributions are determined by dividing the prior year-end fair market value of the retirement account by the applicable distribution period or life expectancy.
Some qualified plans will allow certain participants to defer beginning their RMD until they retire, even if they are older than age 70.5. Qualified plan participants should check with their employer to determine whether they are eligible for this deferral.
Related Links
Avoiding RMD Pitfalls
Tis The Season For Required Minimum Distributions
Preparing for the RMD Season - Part 1
Preparing for the RMD Season - Part 2
See also: In-Service Withdrawal, Individual Retirement Account - IRA, IRA Adoption Agreement and Plan Document, Non-Qualified Distribution, Ordering Rules, Qualified Distribution, Recharacterization, Reconversion, Roth IRA, Roth IRA Conversion, SEP IRA, SIMPLE IRA, Spousal IRA, Triggering Event
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