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What is the "Required Minimum Distribution"(RMD) for a Traditional IRA?
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What is the "Required Minimum Distribution"(RMD) for a Traditional IRA?

A required minimum distribution (RMD) is the amount of money that must be withdrawn from a traditional, SEP, or SIMPLE individual retirement account (IRA) by owners and qualified plan participants of retirement age.


As of 2020, the first distribution must be made by April 1st after you turn 72 (prior to 2020, the RMD age had been 70½ years old). In subsequent years, the distribution must be made by December 31st. The participant must determine the minimum amount required to be distributed each year. The participant can always withdraw more than the required minimum distribution.


However, on March 27, 2020, President Trump signed a $2 trillion coronavirus emergency stimulus package into law. It suspended required minimum distributions from retirement accounts in 2020. This gives those accounts more time to recover from the stock market downturns, and retirees who can afford to leave them alone get the tax break of not being taxed on mandatory withdrawals. If you need more information on Required Minimum Distribution, please see IRS Publication 590.

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