A required minimum distribution is the amount the IRS requires you to withdraw annually from traditional IRAs and 401(k)s once you reach age 73. It's calculated by dividing your prior year-end balance by a life-expectancy factor from the IRS Uniform Lifetime Table.
Missing an RMD triggers a steep penalty on the shortfall. Roth IRAs are exempt during the original owner's lifetime, which is one reason some savers convert to Roth before RMDs begin.
Related terms: Cost Basis · FIRE