Minimum Required Distribution
Beginning April 1 following the calendar year you reach age 70½, you are generally required to withdraw a minimum amount of money from your tax–advantaged retirement savings accounts each year. This is called a minimum required distribution, or MRD. You are responsible for taking the correct amount every year to avoid stiff tax penalties. If you are still actively working at age 70½, the minimum required distributions begin when you retire.
You generally have to take MRDs from any retirement savings plan or account in which you contributed tax–deferred assets or had tax–deferred earnings, such as the Lay DC Plan.
You can always take more than the MRD amount. You may wish to reinvest MRDs in annuities or other savings vehicles as a way to make your savings go further.1
For a complementary discussion about ways to make your retirement money — including MRDs — work for you, contact one of our financial education specialists.
1Note: You cannot reinvest MRDs in a tax-advantaged retirement plan or account.