RMD (Required Minimum Distribution)
The amount the IRS forces you to withdraw each year from tax-deferred retirement accounts, starting at age 73. Skip it and the penalty is brutal.
By Findley's Finance · Last reviewed: September 2026
Why it matters
RMDs exist because the government gave you a tax break and eventually wants its cut — tax-deferred cannot mean tax-forever. The withdrawal is taxed as ordinary income, and it can push you into a higher bracket or raise Medicare premiums, which is why Roth conversions in your 60s are a popular way to shrink future RMDs. Miss one and the penalty takes a steep bite of what you should have withdrawn.