Save time with our cheat sheets, fact sheets, checklists & books!

February 16, 2009

Required Minimum Distribution (RMD)

Your Guide



The minimum amount that must be withdrawn from retirement accounts, including qualified plans, 403(b) accounts, 457(b) accounts or IRAs, each year. For retirement account owners, required minimum distributions (RMD)s must begin from the retirement account by the participant’s required beginning date (RBD), and must continue for each year until the participant dies.

When the participant dies, the beneficiary must continues to take RMD amounts, as permitted under the plan and/or elected by the beneficiary. The RMD rules do not apply to Roth IRA owners.

They do apply to Roth IRA beneficiaries.

Referring Cite

IRC §401(a)(9); Treas Reg §1.401(a)(9)/Final RMD Regulations-TD 8987

Additional Helpful Information

  • The beneficiary must take the RMD for the year of death, if the retirement account owner dies in an RMD year, and fails to withdraw the RMD for the year of death. This amount it is reported under the beneficiary’s tax identification number, and included in the beneficiary’s income.
  • If the participant fails to withdraw the RMD amount by the applicable deadline, he/she will be subject to an excess accumulation tax of 50% of the shortfall. IRC §4974(a); Treas. Reg. §54.4974-1

Keep Learning

Domestic abuse distribution

A domestic abuse distribution is one that is made to domestic abuse victim, during the 1-year period beginning on any date on which the individual

Eligible retirement plan

The term “eligible retirement plan”, means a retirement plan to which a rollover contribution can be made. These are: (i)an individual retirement account described in

Qualified See-Through Trust beneficiary

Definition A qualified trust beneficiary is a trust that satisfies the requirements so as to be treated as a designated beneficiary.   For retirement accounts inherited

Saver’s Credit

Definition Also known as the Saver’s Tax Credit: Nonrefundable tax credit available to eligible individuals who make contributions to their retirement account. The saver’s credit

Be among the first to know when

IRA Rules