What does Required Minimum Distribution mean? Read on to discover the definition & meaning of the term Required Minimum Distribution - to help you better understand the language used in insurance policies.
Required Minimum Distribution
Required Minimum Distribution (RMD) is the minimum withdrawal for certain retirement plans, as prescribed by the Internal Revenue Service. This usually begins on the first April after the worker has reached 70.5 years of age and retires from their job.
More Insurance Terms And Definitions
The Merriam-Webster Dictionary defines insurance as:
b: Coverage by contract whereby one party undertakes to indemnify or guarantee another against loss by a specified contingency or peril.
c: The sum for which something is insured.
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