rmds

Required Minimum Distributions, often abbreviated as RMDs, are legally mandated annual withdrawals from traditional Individual Retirement Accounts (IRAs) and employer-sponsored retirement plans in the United States. These withdrawals must start when the account holder reaches a certain age, typically 72, to ensure that the tax advantages of these accounts do not extend indefinitely. The exact amount to be withdrawn each year is determined by specific IRS life expectancy tables and the account balance at the end of the previous year.