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Required Minimum Distribution

Your required minimum distribution is the amount determined by the IRS that you must withdraw from your account each year. When you reach age 70½, you must start taking withdrawals from your IRA or retirement plan account.

  • You can withdraw more than the minimum required amount
  • Your withdrawals will be included in your taxable income except for any portion that was previously taxed or that can be drawn tax-free

How the Required Minimum Distribution is Calculated

The required minimum distribution for any year is based on the account balance as of the end of the last calendar year. The account balance is divided by a distribution period from the IRS’s “Uniform Lifetime Table.”