Glossary
RMD
Required minimum distribution — the amount that generally must be withdrawn each year from most tax-deferred retirement accounts once the applicable age is reached.
Required minimum distribution — the amount that generally must be withdrawn each year from most tax-deferred retirement accounts once the applicable age is reached.
An RMD is generally the prior year-end account balance divided by an IRS life-expectancy factor, and it is taxed as ordinary income. Under SECURE 2.0 the applicable age is 73 for individuals who reach 72 after 2022 and 75 for individuals born in 1960 or later. IRA RMDs may be aggregated and taken from one or more IRAs. Employer-plan RMDs generally must be taken separately from each plan, with one exception: RMDs from multiple 403(b) accounts may be aggregated and taken from one 403(b). Roth IRAs require no distributions during the original owner’s lifetime.
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