Required Minimum Distributions

From AIG Funds

Taking the Required Minimum Distributions Every Year

IRA owners must begin withdrawing assets from their IRA once they retire or reach a specific age. The Required Minimum Distribution (RMD) is the amount that has to be withdrawn in the first year and each year thereafter. By taking only RMDs and not annuitizing or making a lump-sum distribution, you and your beneficiaries can help stretch the income from your IRA over decades and multiple generations

When Must RMDs Begin?



Required Beginning Date (RBD)

Deadline for Taking RMDs in the Year After the RBD and Each Year Thereafter


April 1 of the year following the calendar year in which the owner reaches age 70½

December 31


Important Note: The rules involving RMDs are complex and subject to change at any time. Please consult with your financial and tax advisors to learn more about RMDs and to determine when and how much you need to take out each year.