Required Minimum Distribution (RMD)

Required Minimum Distribution (RMD) is a stipulation that requires the asset holder,
at the age of 72 (age 70 1⁄2 if the individual is 70 1⁄2 before January 1, 2020; 73 if the
individual reaches age 72 after December 31, 2022) to take a minimum distribution
from their account each year. The amount of the RMD depends on the account
balance.

“Beginning in 2023, the SECURE 2.0 Act raised the age that you must begin taking
RMDs to age 73. If you reach age 72 in 2023, the required beginning date for your
first RMD is April 1, 2025, for 2024. Notice 2023-23PDF permits financial institutions
to notify IRA owners no later than April 28, 2023, that no RMD is required for 2023.”