What is Required minimum distribution (RMD)?
In short
A required minimum distribution (RMD) is the minimum amount that must be withdrawn each year from a traditional individual retirement account or employer plan once the owner reaches the required beginning age.
Key takeaways
- The age is 73 for people born 1951–1959 and 75 for those born in 1960 or later.
- Roth individual retirement accounts have no required distributions during the owner's life.
- Qualified charitable distributions count toward the requirement.
Where it's tested
TCP: Retirement Planning Strategies — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
Under current law, at what age must a person born in 1955 begin taking required minimum distributions from a traditional IRA?