RMD (Required Minimum Distribution)

Definition

The minimum amount you must withdraw from your retirement accounts each year once you reach a certain age (currently 73).

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Roth vs Traditional 401k

RMDs apply to Traditional IRAs and 401(k)s. The government forces you to take money out so they can collect the deferred taxes. Roth IRAs generally do not have RMDs during the owner's lifetime.

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This tool is for illustrative purposes only and does not constitute professional financial, tax, or legal advice. Calculations are estimates and may not reflect real-world variables or local regulations. Always consult with a qualified professional before making financial decisions.