RMD (Required Minimum Distribution)
The minimum amount you must withdraw annually from most pre-tax retirement accounts starting at a set age.
Required minimum distributions are mandatory annual withdrawals from traditional IRAs, 401(k)s, and similar pre-tax accounts, beginning at an age set by current law. The amount is calculated from your account balance and an IRS life-expectancy factor, and the withdrawal is taxed as ordinary income.
RMDs exist so the government eventually collects tax on money that grew tax-deferred for decades. They can be a planning headache: large balances can force sizable taxable withdrawals that push you into higher brackets and trigger IRMAA. This is the core reason people do Roth conversions in their 60s — converting before RMDs begin shrinks the future required withdrawals.
Roth IRAs have no RMDs during the original owner's lifetime, and missing an RMD carries a steep penalty, so the timing and amount are worth getting right.
This definition is general information to help you understand a term, not financial, tax, or legal advice. Figures that change year to year (limits, thresholds, rates) should be confirmed against current official sources. For guidance on your situation, a licensed fee-only fiduciary is the right next step.