Thursday, March 31, 2011

Understanding the Minimum Distribution Rules for Your Retirement Plans

At some point you will have to take distributions from your retirement accounts -- our personal finance colleagues in Extension have been getting a lot of questions on the topic (especially in December!). If people don’t take the first distribution of their money at age 70 ½, they have until April 1 of the following year to take it…or there are fees to pay. Here are a couple resources are a great read to better understand what people will need to consider when it comes time to withdraw the RMD (required minimum distribution) out of IRAs.

Rules for Taking Distributions from Tax-Deferred Retirement Savings Plans, University of Illinois publication:

Distribution table link:

There are also a number of FAQs on the topic at Just search "RMD."

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