What is the Required Minimum Distribution (RMD)?
By federal law, Traditional, SEP, SIMPLE and Rollover IRA account holders and participants in some qualified retirement plans must begin taking distributions no later than April 1st in the year in which they reach age 70 ½. Roth IRAs are not subject to RMD. RMD is the minimum amount that you must withdraw each year. Your RMD can be calculated based on the Uniform Life Expectancy Table (which assumes that you have a beneficiary who is exactly 10 years younger) or the Joint Life Expectancy Table if you’re sole beneficiary is your spouse who is more than 10 years younger. If you would like more information, order our Schwab IRA RMD Guide.
