The minimum amount that owners of IRAs and employer-sponsored retirement plans (such as a 401(k) plan) must withdraw each year, generally starting at age 73. Withdrawals are taxed as ordinary income, and account owners who withdraw less than the required amount may owe the IRS a 50% penalty. Withdrawals are not required for Roth IRAs. See IRA, 401(k) Plan
Glossary
Required Minimum Distribution
Your A‑to‑Z Glossary of Financial Terms
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a
- ACA
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b
- Balance Sheet
- Bank
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- Base Layer
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- Buy-Now Pay-Later Programs
c
- Call Option
- Capital Asset
- Capital Gain
- Capital Gains Tax Rate
- Capitalism
- Captive Agent
- Cardano
- Cash Equivalents
- Cash Reserves
- Cash Value
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- Catastrophizing Bias
- CD
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- CFP® Board of Standards
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- Checking Account
- Claim
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- Credit Bureau
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- Credit Risk
- Credit Score
- Credit Unions
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- Crypto
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- Currency Risk
- Custodian
- Custody
d
- Dealer
- Death Benefit
- Death Tax
- Debit Cards
- Debt
- Debt Securities
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- Decedent IRA
- Decentralized Finance
- Deductible
- Deductible IRA
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- Deed
- Default
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- Defined Benefit Plan
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- Deflation
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- Duration
e
- Earned Income
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- Earnings
- Economic Indicator
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- Efficient Frontier
- Elder Financial Abuse
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- Employee Benefits
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- Endowment Fund
- Entrepreneurship
- Equifax
- Equities
- Equity
- Estate
- Estate Planning
- Estate Tax
- ether
- Ethereum
- Exchange
- Exchange-Traded Fund
- Excise Tax
- Exclusion
- Executor
- Exemption
- Expenses
- Experian
- Exposome
f
- Face Value
- Fascism
- FDIC
- Fear
- Federal Deposit Insurance Corporation
- Federal Income Tax
- Federal Reserve
- Federal Revenue
- Fees
- FICA
- FICO
- Fiduciary
- Fiduciary Obligation
- Financial Abuse
- Financial Advisor
- Financial Firm
- Financial Industry Regulatory Authority
- Financial Literacy
- Financial Planning
- Fitch
- Fixed Annuity
- Fixed Expense
- Fixed-Rate Mortgage
- Flexible Spending Account
- FOMO
- Forbearance
- Foreclosure
- Foreign Exchange
- Forex
- Form 1040
- Form ADV
- Framing Bias
- Futures Contracts
- FX
- FX Futures
g
- GDP
- Grantor
- Grantor Trust
- Greed
- Gross Domestic Product
- Gross Income
- Guaranteed Lifetime Income
- Guardian
h
- Harry Markowitz
- Health Care Power of Attorney
- Health Insurance
- Health Savings Account
- Healthspan
- Hedge
- Hedge Fund
- Heirs
- Herd Mentality Bias
- High-Deductible Health Plan
- High-Yield Bond
- Hindsight Bias
- Home Equity
- Home Equity Line of Credit
- Home Equity Loan
- Hospital Insurance
- Hot Wallet
- Howey Test
i
- Illusion of Attention Bias
- Illusion of Control Bias
- Immediate Income Annuity
- In Force
- Income
- Income Tax
- Independent Insurance Agent
- Index Funds
- Index Investing
- Indirect Tax
- Individual Retirement Account
- Inflation
- Inflation Rate
- Inheritance Tax
- Inherited IRA
- Institutional Investors
- Insurance Agent
- Insurance Cap
- Insurance Claim
- Insurance Company
- Insurance Contract
- Insurance License
- Insurance Policy
- Insured
- Intangibles Tax
- Interest
- Interest Rate
- Interest Rate Risk
- Internal Revenue Code
- Internal Revenue Service
- Intuition Bias
- Investment Advisers Act of 1940
- Investment Advisor Representative
- Investment Bank
- Investment Contract
- Investment-Grade
- Investment Manager
- IRA
- IRS
- Issuer
j
- Joint and Survivor
- Joint Tenancy With Rights of Survivorship
- JTWROS
- Junk Bond
k
- Key Person Insurance
- Kidnap and Ransom Insurance
l
- Lagging Indicator
- Landlord
- Lapse
- Large-cap
- Layer 1
- Layer 2
- Leading Indicator
- Liabilities
- Lien
- Life Expectancy
- Life Insurance
- Lifespan
- Liquid
- Liquidity
- Living Will
- Loan
- Loan Agreement
- Loan Modification
- Long-Term Capital Gains
- Long-Term Care
- Long-Term Care Insurance
- Longevity
- Loss Aversion
- Lump Sum
m
- Major Medical Insurance
- Marginal Tax Rate
- Market Capitalization
- Market Correction
- Market Sector
- Maturity
- Maturity Date
- Medicaid
- Medical Expense Insurance
- Medical Expenses
- Medicare
- Medicare Part A
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- Medicare Part C
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- Mental Accounting Bias
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- Mid-cap
- Modern Portfolio Theory
- Modified Adjusted Gross Income
- Money Manager
- Money Market Account
- Money Market Fund
- Moody’s
- Mortgage
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- Mortgage Interest
- Mortgage Life Insurance
- Municipal Bond
- Mutual Funds
n
- Nasdaq
- National Credit Union Administration
- Net Investment Income Tax
- Net Profit
- Net Worth
- New York Stock Exchange
- NGO
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- Non-Discretionary Expense
o
- Obamacare
- Offshore Account
- Opportunity Cost
- Optimism Bias
- Options Contract
- Ordinary Income
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- Out of Force
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- Overtime Pay
p
- Passive Income
- Passive Management
- Pattern Recognition Bias
- Payable on Death
- Payroll Tax
- Pension
- Pension Fund
- Pension Plan
- Permanent Life Insurance
- Personal Finance
- Pessimism Bias
- Picks and Shovels
- POD
- Policy Limit
- Policy Owner
- Portfolio Manager
- Power of Attorney
- Premium
- Premium
- Prenuptial Agreement
- Primary Beneficiary
- Principal
- Private Equity
- Private Mortgage Insurance
- Probate
- Profit
- Profit-Sharing Contribution
- Profit-Sharing Plan
- Proof of Stake
- Proof of Work
- Property and Casualty insurance
- Property Tax
- Protocol
- Proud Papa Bias
- Publicly Traded Company
- Purchasing Power
- Put Option
q
- QTIP
- Qualified Terminal Interest Property Trust (QTIP)
r
- Real Estate
- Real Estate Investment Trust
- Realized Capital Gain
- Rebalancing
- Recency Bias
- Recession
- Refinance
- Registered Investment Advisor
- Regret Avoidance Bias
- Rent
- Required Minimum Distribution
- Retirement Account
- Retirement Plan
- Retirement Planning
- Revenue
- RIA
- Risk
- Risk Tolerance
- RMD
- Rollover
- Rollover IRA
- Roth IRA
- Royalty
- Rule of 55
- Rule of 72
s
- Salary
- Sales Tax
- Saving Bonds
- Savings Account
- Schedule C
- Second Mortgage
- Secondary Beneficiary
- Securities
- Securities Investor Protection Corporation
- Securities License
- Self-Employment Earnings
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- Separation of Service
- Settlor
- Shareholder
- Shares
- Short-Term Capital Gains
- SIMPLE IRA
- Single-Life Option
- SIPC
- Small-Cap
- Small Sample Size Bias
- Social Security
- Social Security Administration
- Socialism
- Soft Dollar Compensation
- SOL
- Solana
- S&P
- S&P 500 Stock Index
- S&P Dow Jones Indices
- Speculative-Grade
- SPIVA Scorecard
- Spousal IRA
- Spread
- Stablecoins
- Standard Deviation
- State Income Tax
- State Securities Regulator
- Status Quo Bias
- Stock
- Stock Exchange
- Stock Market
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- Strike Price
- Student Loan
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- Suitability
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t
- T-Bills
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- Tax Avoidance
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- Term Certain
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u
- U.S. Securities and Exchange Commission
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v
- Value-Added Tax
- Variable Annuity
- Variable Expense
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- Volatility
w
- Wages
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- Ward
- Wealth Management Industry
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- Will
x
- XRP
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y
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z
- Zero-Coupon Bonds