Required distributions definitionQuestion 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
Related Categories: Accounting, Finance, Taxes, Financial Planning, Human Resources, Retirement And Exit Strategies
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