Quote:
Originally Posted by GeorgeT
Forgive my ignorance but what is an MRD?
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Hi George,
The MRD is that thing that kicks in at age 70 and 1/2 when the IRS won't wait any longer to start collecting income tax on tax-deferred retirement accounts. It's called the Minimum Required Distribution. But I think I have also seen it called the RMD.
It's when it's time to start paying the piper --
although I really never thought of the IRS as a piper.
There is a formula that calculates the minimum the taxpayer has to withdraw each year after age 70 and 1/2.
I always thought it was weird that it is called a distribution. Seems like it should be called a withdrawal.....But.....nope....it's the IRS calling it that -- wouldn't want to make things too clear.
Boomer