Required minimum distribution
Required minimum distribution
Required minimum distribution, or RMD, pertains to traditional, SEP, and SIMPLE IRAs. The IRA accountholder must take a certain amount of money out of the account by April 1 of the year he turns 70-1/2, and then every year thereafter. The exact amount is dependent on the person's age and life expectancy. If the RMD isn't taken, the accountholder will be charged an excise tax by the IRS.
6.05
