Employee Benefits Blog

Posts tagged required minimum distributions

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When Does An Employee “Retire” and Thus Become Required to Take Minimum Plan Distributions?

Required Minimum Distributions (RMDs) are minimum amounts that a retirement plan account owner must withdraw annually starting by April 1 of the year following the year in which he or she reaches age 70 ½.  Failure to take an RMD on a timely basis results in a penalty of 50% of the undistributed amount, unless due to a reasonable error.