Required Minimum Distributions (RMDs) are mandatory withdrawals that owners of certain tax-advantaged retirement accounts, such as Traditional IRAs, 401(k)s, and other qualified plans, must take annually starting at age 73 (for those born after 1960). The IRS requires these withdrawals to ensure that taxes are paid on the funds that have been growing tax-deferred. Failure to take the full RMD can result in a 50% penalty on the amount not withdrawn. The RMD amount is calculated based on the account balance and the owner’s life expectancy factor from the IRS Uniform Lifetime Table. 26 U.S. Code § 401
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