Required minimum distribution is the minimum amount that a person must take out of their Individual Retirement Account (IRA) starting at either age 70-and-a-half years of age, or 72 years of age if the person’s birthday falls after July 1, 2019. Also referred to as RMD. A person may take more than their RMA. Also, the RMA amount is considered taxable income. Treasury Regulation § 1.401(a)(9) by-and-large establishes the regulations on RMDs.
[Last updated in April of 2021 by the Wex Definitions Team]