← The DictionaryRetirement Desk
RMD
Also known as: Required Minimum Distribution
What it is
The amount the IRS forces you to withdraw from tax-deferred retirement accounts starting at age 73 (or 75, depending on birth year).
What it really means
The tax bill you thought you deferred forever. Roth conversions in your low-income years between retirement and RMD age are where fortunes are quietly made.