IRA Beneficiary
6. Required Minimum Distribution
The next question is, "How much am I required to take out?"
This is called your Required Minimum Distribution. You can take out more at any time, but Uncle Sam says you must take out at least a certain amount every year.
Uncle Sam is serious here, too. If you don't take out enough, there is a 50% penalty on the amount you should have taken out but didn't.
Calculating your Required Minimum Distribution is very straightforward, and it was recently made even simpler.
NOTE: In January 2001, the IRS changed some of the rules that affect how required minimum distributions are determined.