The minimum amount you must withdraw annually from tax-deferred retirement accounts (Traditional IRAs, 401(k)s, etc.) starting at a certain age. RMDs are calculated by dividing your account balance by a life expectancy factor from IRS tables. The SECURE Act 2.0 raised the starting age to 73 (2023) and will increase it to 75 (2033). Failure to take RMDs results in a 25% penalty on the amount not withdrawn.
Back to Glossary
RMD (Required Minimum Distribution)
DistributionsThis site may contain affiliate links. We may earn a commission if you sign up through our links, at no extra cost to you. Content is for educational purposes only and is not financial, investment, tax, or legal advice. Consult a qualified professional before making financial decisions.