what is a required minimum distribution 
a required minimum distribution rmd is the government s way of ensuring that it will eventually be paid taxes on your investments and the irs doesn t want to wait forever to collect its money federal law therefore imposes rmds ages by which you must begin taking money out of certain retirement accounts such as iras and 401 k s and paying the taxes on the money that you didn t pay before you must begin taking rmds by age 72 if you were born before dec 31 2022 you have until age 73 if you reach age 72 after this date 8the bottom line deferred literally translates to delayed you ll pay taxes on this money eventually some individuals might prefer to pay those taxes in the current year in exchange for other perks such as those provided by roth accounts others would rather pay taxes on the money at a later time in life when they ll presumably be in a lower tax bracket speak to an investment advisor or a tax professional if you have any questions about which option is best for you 