Required minimum distribution

{
  "id": "MLC-T-LAW-004252",
  "term": "Required minimum distribution",
  "field": "Law",
  "definition": "The annual amount that an account holder must withdraw from certain retirement accounts, such as traditional IRAs and 401(k)s, once they reach a specific age. These distributions are mandated by the Internal Revenue Service to prevent individuals from indefinitely deferring taxes on their retirement savings. Failure to take the full amount results in a 25% excise tax on the undistributed portion, which can be reduced to 10% if corrected promptly.",
  "url": "https://mlchart.com/terminology/law/required-minimum-distribution/"
}