Glossary
Required minimum distribution
Required minimum distribution: A required minimum distribution (RMD) is the amount the IRS requires you to withdraw each year from traditional retirement accounts once you reach the age set by law.
Updated February 1, 2027
An example
Withdrawing a required amount from a 401(k) or traditional IRA each year after the starting age.
Why it matters to you
Missing an RMD triggers a penalty. The starting age and the calculation change with the law; check the current rules at irs.gov or with your plan.
Where to go next
See also
- Catch-up contribution
A catch-up contribution is the extra amount people aged 50 and over are allowed to put into a 401(k), IRA or similar account above the standard annual limit.