Required Minimum Distribution

The IRS requires that owners of retirement plans such as traditional IRAs (individual retirement accounts) start taking minimum distributions or withdrawals from their plans by April 1st of the year that follows the time at which they turn 70.5 years of age. The required minimum distributions are then made each of the following years. The amount of the required minimum distribution is based on the fair market value of the plan at the end of the prior year, and the assumed distribution period which is based on life expectancy given the person's current age. Required minimum distributions apply to a broad range of retirement plans including: 401(k); 403(b); 457(b); Roth 401(k); SIMPLE IRA; SEPs, and; SARSEPs. Roth IRAs are excluded from this requirement while the owner is still alive.

Noteworthy Reads - October 18, 2013

- The value of health and longevity -- ”a 1 percent reduction in cancer mortality would be worth $500 billion” (Dartmouth College)

- 2 formulas intended to optimize annual retirement withdrawal strategy -- 1 approach is dynamic and the other is based on required minimum distribution (RMD) rules (...

Mark Warshawsky on the Retirement Income Market

Mark J. Warshawsky is Director of Retirement Research at Towers Watson.

Dr. Warshawsky served as assistant secretary for economic policy at the U.S. Treasury Department from 2004-2006 and he has held senior level economic research positions at the Federal Reserve Board, the Internal Revenue Service and...

Treasury Department Focuses on Longevity Risk with Retirement Income Guidance

The Treasury Department just released a proposed set of regulations that could have a meaningful impact on the retirement income market in the U.S.

The Treasury’s guidance package builds on feedback received in response to the request for comments issued by the Labor and Treasury Departments last fall.


MetLife is Nudging the World of Defined Contribution toward Income Annuities

Jody Strakosch is the National Director for MetLife’s Retirement Products Group.  In this role, Jody has a broad perspective on developments in the institutional space.  In other words, Jody is intimately familiar with how in-plan accumulation and point of retirement annuities are evolving in the defined contribution arena. 



Annuity Taxes

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Annuity Digest Buying Guide: Annuity Taxes

The following list provides links to some of the key terms discussed in this chapter on