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RMD (Required Minimum Distribution)

The minimum you must withdraw from pre-tax retirement accounts starting at age 73.

Why it matters

Applies to traditional IRAs, 401(k)s, 403(b)s, and similar accounts. Missing an RMD triggers a 25% excise tax on the shortfall (reduced from 50% by SECURE 2.0). Roth IRAs have no RMDs for the original owner.

See also

Educational only — not financial, tax, or legal advice.