Asked by Peter  |  Submitted April 20, 2017

What is Required Minimum Distribution?

Report Question Report

  Leave Answer

Log in or sign up with email
By submitting you agree to our Terms of Service

  Answers  |  1

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() | 04.24.17 @ 13:29


  Our Professionals Are Available to Help!

  Can't find What You're Looking For?