How do required minimum distributions (RMDs) work?

Required Minimum Distributions are the minimum amount that individuals must withdraw each year from certain types of retirement accounts, starting at age 73. The first distribution must be taken by April 1 of the year following the year you turn 73. Subsequent distributions must be taken by December 31 of each following year.

In general, your RMD amount varies each year and is based on a percentage of the total assets you hold that are subject to RMD rules. You can determine this percentage using your life expectancy, and the IRS’s “Uniform Lifetime Table.”