what is a required minimum distribution 
a required minimum distribution rmd is the amount of money that you must withdraw from a retirement account each year after you reach a certain age 72 or 73 depending on your birth year it is a rule established by the internal revenue service irs to ensure that the funds in your retirement account are being withdrawn rather than kept in a tax sheltered account indefinitely as for example an eventual inheritance for your heirs if you re 72 or 73 and still working you can delay taking rmds from your workplace plan such as a 401 k until you retire unless you own 5 or more of the business that s sponsoring the retirement plan 1