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required minimum distributions (RMDs)
Required minimum distributions (RMDs) are the minimum amount you must withdraw from your Individual Retirement Account (IRA) or 401(k) upon reaching a certain age. The age used to be 70 1/2, but rose to 72 starting January 1, 2020, under the SECURE Act of 2019. RMD amounts differ based on individual circumstances; details are available on the IRS site. There are penalties for failure to take RMDs on time.