The Required Minimum Distribution (RMD) is the minimum amount that a retirement plan account owner must withdraw annually once they have reached a certain age. This age is typically 72 for most retirement plans, including traditional IRAs and 401(k) plans. This age could be different if there have been changes in regulations after my last training data.

The Internal Revenue Service (IRS) in the United States stipulates these rules to ensure that people don’t just accumulate retirement account funds indefinitely, but actually begin to draw down these accounts in their retirement.

The amount that must be withdrawn is calculated based on the account balance at the end of the previous year and life expectancy tables provided by the IRS. If the RMDs are not taken, a penalty may apply, which is usually 50% of the amount not distributed as required.

Please note that the rules around RMDs can be complex and can change with new tax laws or regulations, so it’s always a good idea to consult with a tax professional or financial advisor to understand the current requirements.