Asked by Peter  |  Submitted April 20, 2017

What is Required Minimum Distribution?

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  Answers  |  2

April 20, 2017

RMDs refer to required minimum distributions on tax-deferred retirement accounts. Under current IRS rules, you must take distributions when you are 70 1/2 years old, whether you want to or not. Based on IRS tables, at 70 1/2 years the divisor is 27.4, equaling a 3.6% withdrawal of the December 31 account balance in the preceding year.

You can take it in 1 year, or take 2 distributions the following year. There is a 50% penalty for not taking RMD.

$commenter.renderDisplayableName() | 10.01.20 @ 18:13


April 26, 2017

The annual amount you have to take out of your retirement funds after you reach 70.5 years. Even if you don't want to or need the money or think the amount they require you to spend (so they can tax it) is ridiculous! Maybe Super Trump could fix this.

$commenter.renderDisplayableName() | 10.01.20 @ 18:13