About Required Minimum Distributions

A Required Minimum Distribution (RMD) is the minimum amount that retirement account owners must withdraw annually from certain tax-deferred retirement accounts once they reach the applicable age under IRS rules.

The calculation generally uses the previous year-end account balance divided by the IRS life expectancy factor found in the Uniform Lifetime Table.

Formula:

RMD = Account Balance ÷ Life Expectancy Factor

Failing to take required distributions may result in tax penalties. Consult a qualified financial advisor or tax professional regarding your specific situation.