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Required minimum distribution (RMD)

The financial definition for Required minimum distribution (RMD):

The minimum amount that the IRS requires must be withdrawn each year from all tax-advantaged retirement plans starting in the calendar year following the year in which the plan holder reaches age 70-1/2. Roth IRAs are exempt from this rule.




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A distribution to the shareholders of a mutual fund out of profits from selling stocks or bonds, that is subject to capital gains taxes for the shareholders.


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A function that shows the probability that the random variable will attain a value less than or equal to each value that the random variable can take on.


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Selling a large lot of a security in such a way that the security price is not heavily influenced.


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