RMD (Required Minimum Distribution)
The minimum amount you must withdraw each year from traditional retirement accounts, starting at age 73.
What does rmd mean?
The IRS requires annual withdrawals — calculated from your balance and a life-expectancy factor — so tax-deferred money is eventually taxed. Missing an RMD carries a steep penalty. Roth IRAs have no RMDs for the original owner.
Put it to use
Required Minimum Distribution (RMD) Use this calculator to determine your Required Minimum Distributions (RMD) as an account owner of a retirement account. This financial calculator will also look at potential future year's distribution requirements. Beneficiary Required Minimum Distributions (RMD) Use this calculator to determine your Required Minimum Distributions (RMD) as a beneficiary of a retirement account.
Related terms
All glossary terms