Small business answers — NOW!

Required distributions definition

Question
What does "required retirement distributions" mean? 
Answer
Required retirement distributions are distributions that retirement plans must begin delivering to employees at a certain age of the plan participant. Generally, benefits must begin to be paid out no later than April 1 following the year in which a participant attains age 70½.

Failure to receive required minimum distributions results in a 50-percent penalty on the participant. 
Brain Trust contributor: Author of J.K. Lasser's Small Business Taxes 2007
© 2007, Small Business Network, Inc., All Rights Reserved.
Subject to the Terms of Use of AskJim.biz
Print this page   Bookmark this page   E-mail this page to a friend   Go back to previous page
AskJim ID: 2167