Retirement & Savings

What Is a Required Minimum Distribution (RMD)?

A required minimum distribution (RMD) is the minimum amount the IRS requires owners of certain tax-deferred retirement accounts, such as traditional IRAs and 401(k)s, to withdraw each year once they reach an age set by federal law. The amount is based on the account balance and an IRS life expectancy factor.

How It Is Calculated

RMD = prior year-end account balance ÷ the applicable distribution period from IRS tables.

Roth Accounts

Roth IRAs do not require withdrawals during the original owner's lifetime. The RMD starting age has been raised by recent legislation, so current rules should be checked.

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🔗 Related Terms

Traditional IRA 401(k) Plan Tax-Deferred Roth IRA

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Last updated: September 27, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.