Required minimum distributions (RMDs) are the least amount you must withdraw from your retirement accounts each year. In most cases, you must start taking these distributions from traditional IRAs, SEP IRAs, SIMPLE IRAs, and employer-sponsored retirement plans when you reach age 73.
If you have a workplace retirement plan (like a 401(k) or profit-sharing plan), you can generally delay starting your RMDs until the year you retire—unless you own at least 5% of the company offering the plan.
You can always withdraw more than the required minimum amount.
Most withdrawals count as taxable income, except for any portion you’ve already paid taxes on (your basis) or withdrawals from certain accounts that qualify for tax-free treatment, such as eligible Roth distributions.
More information can be found on the IRS website.
