The minimum amount you must withdraw from a qualified retirement plan, such as a 401(k) plan or a traditional IRA, when you reach a specified age. In 2023, the SECURE 2.0 Act raised the RMD age to 73 for people born from 1951 through 1959, and to 75 for people born after 1959.

RMDs begin annually when you reach the RMD age or when you retire, whichever comes later. However, if the plan is an IRA or you are a 5% owner of the company operating the plan, the RMDs must begin when you reach RMD age, even if you are still working.

RMDs do not apply to nonqualified deferred compensation, and this is one benefit that NQDC offers over traditional 401(k) plans.