Required minimum distributions
Just as the government places restrictions on when you can start taking distributions, it also requires you to begin taking minimum distributions from your retirement plan account by age 70½. Not taking minimum distributions can lead to a steep tax penalty, so it's important to know how much to withdraw.
Your Required Minimum Distribution will change every year, and it is calculated by dividing the balance in your account at the end of the prior year by a life expectancy factor found in tables in IRS Publication 590. If you are uncertain of your Required Minimum Distribution or simply want someone else to calculate it for you, contact your plan administrator.
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