minimum amount of money that the IRS requires individuals to begin withdrawing from their retirement accounts (excluding Roth IRAs) beginning at age 70½.
The smallest periodic benefit payment the IRS will allow a participant of a 401 or 457 plan to receive. In determining this amount, the schedule of payments, amount of assets in the account and life expectancy of the participant (and beneficiary) are considered. See also “IRS minimum required distribution.
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 known as required minimum distribution (RMD)
A minimum required distribution is the smallest amount you can take each year from your 401(k), 403(b), traditional IRA, or other retirement savings plan once you've reached the mandatory age for making withdrawals, usually 70 1/2. If you take less than the required minimum, you owe a 50% penalty on the amount you should have taken. You calculate your MRD by dividing your account balance at the end of your plan's fiscal year — usually but not always December 31 — using a divisor determined by your age.
Based on IRS rules, you must begin receiving distributions from your account by April 1 following the year you reach age 70 1/2 or retire, whichever is later.
The minimum amount that must be distributed to an individual from his retirement plan account or IRA. Generally, for distributions from plan accounts, the initial payments must begin the April 1 of the year following the later of the year in which the individual attains of age 70Â1/2 or retires. For distributions from IRAs these payments must begin the April 1 of the year following the year the account owner turns 70Â1/2. All subsequent payments must be made by December 31. A 50% tax penalty applies to withdrawals not made on time.
A minimum amount of money you need to withdraw from most qualified retirement plans by April 1 of the year after the year in which you turn 70 1/2.
minimum payment required to be taken from a 401 or 457 account annually in order to satisfy the Internal Revenue Code's requirements; starting in the year you reach age 70 1/2 or retire, if later, you must begin taking payments
