What Does Required Minimum Distribution Mean In Estate Planning?

The amount you are required to withdraw each year from a tax deferred retirement plan after you have reached the required beginning date (RBD).  This amount is determined across all of these accounts and is calculated by dividing the year-end value of all of these accounts by a life expectancy divisor provided by the IRS.  Although calculated across all of these accounts, you can take your total RMD from one account.