Once an IRA holder reaches the age of 70 1/2 the Required Minimum Distribution is the minimum annual distribution amount that holder is required to take.
The amount you are required to withdraw each year from your tax-deferred plan after you reach your Required Beginning Date. It is determined by dividing the value of your tax-deferred accounts by the life expectancy of you and your Beneficiary. The intent is that by the time you and your Beneficiary are both expected to die, your tax-deferred savings will be fully withdrawn.
With qualified retirement plans (such as traditional IRAs), the distribution that you are required to begin taking from your policy or account beginning no later than April 15 of the year following the year during which you reach age 70 1/2.
a minimum annual amount that must be taken from an IRA or qualified plan after age 701/2 (or actual retirement in the case of certain qualified plan participants); also sometimes referred to as "minimum required distribution" (MRD)
Internal Revenue Service rules regarding the distribution retirement plan assets. RMDs may need to begin upon attainment of age 70½ for participants who are a 5% owner of a company or retired from the company (regardless of ownership).
The amount you are required to withdraw each year from your tax-deferred plan after you reach your Required Beginning Date. This amount is determined by dividing the year-end value of your tax-deferred account by a life expectancy divisor found on a chart provided by the IRS.
The minimum amount which must be distributed in any year upon attainment of required beginning date or after the IRA owner's death. The IRS has established a simplified table to determine the required distribution based on the applicable age and life expectancy. If required payments are not timely made, the IRS may impose an excise (penalty) tax. A Roth IRA is not subject to required minimum distributions until after the Roth IRA owner dies.
The minimum amount that the IRS requires must be withdrawn each year from all tax-advantaged retirement plans starting in the calendar year following the year in which the plan holder reaches age 70-1/2.
The minimum annual required distribution amount for an IRA holder who reaches age 70 1/2.
Rules imposed by the Internal Revenue Service governing when distributions from all tax-deferred retirement plans must commence and the maximum time period ove which benefit payments can be made. Generally, you must start to withdraw money by April 1 of the year after the year in which you attain age 70 1/2, and you must continue to withdraw money at least annually. If you do not make any withdrawals, or if you do not withdraw enough, you may have to pay a 50% excise tax (on excess accumulation) on the amount not withdrawn as required. Roth IRAs are exempt from this rule, however, beneficiaries may be required to take distributions.
Contract owners of qualified plans are required by the IRS to take a minimum payout from their contracts according to a calculation involving the account balance and life expectancy. The first required minimum distribution must be taken on or before April 1st, following the year the owner attains age 70½.
After a Traditional IRA holder reaches 70½, a minimum amount must be distributed every year.
The minimum annual distribution individual retirement account (IRA) holders must take upon reaching age 70 1/2. IRA holders must begin taking minimum distributions by April 1 of the year after they reach 70 1/2.