Required Minimum Distributions (RMDs)

Required Minimum Distributions (RMDs) apply to money that has been saved in traditional retirement plans. These plans require that you start taking annual distributions from the plan upon reaching age 73. The size of the distribution is determined by your age and marital situation. Those distributions are subject to ordinary tax consequences. Roth accounts are not typically subject to RMDs by the original owner but may require RMDs once passed on to a subsequent beneficiary.