RMDs, or required minimum distributions, are a key part of retirement planning. Here’s what you need to know about them. RMDs are required minimum distributions from retirement accounts. They are a key part of retirement planning because they help to ensure that you don’t outlive your retirement savings. RMDs are required from all retirement accounts, including 401(k)s, IRAs, and 403(b)s. The amount of your RMD is based on your age and the balance of your retirement account. RMDs must be taken by April 1 of the year following the year in which you turn age 70½. If you don’t take your RMD, you will be subject to a 50% tax penalty on the amount of the RMD. RMDs are an important part of retirement planning. Here’s what you need to know about them.