Financial glossary
Required Minimum Distribution (RMD)
In plain English
The minimum annual amount an owner generally must withdraw from certain retirement accounts after reaching the applicable starting age.
A required minimum distribution (RMD) is the minimum amount generally required each year from certain retirement accounts after the applicable starting age. The IRS formula uses the prior year-end balance divided by a life-expectancy factor; use the official table, not a generic divisor, for a filing decision.
Related calculators
- Required Minimum Distribution CalculatorEstimate a required minimum distribution from a retirement balance and the IRS distribution period. Use the official IRS table for the exact factor.
- Retirement CalculatorProject your retirement savings with employer match, annual raises, and inflation. See your nest egg in today's dollars, year by year.