The ABCs of RMDs
Abstract: One may begin taking penalty-free retirement plan distributions beginning at age 59½. But, after turning age 70½, one must begin taking required minimum distributions (RMDs) from employer-sponsored defined contribution plans and traditional IRAs. If not, the consequences are severe. This article looks at the rules regarding RMDs and how to calculate them. It also discusses the tax ramifications of timing RMDs, while a sidebar shows how to make charitable gifts from an IRA.