Required Minimum Distributions

Distributions that should be taken from specific tax-deferred retirement plans, like 401(k), IRA, or 403(b) once you reach the age of 72, are popularly known as required minimum distributions (RMDs).

Normal Distributions

Normal distributions are when your funds are taken from the retirement plan you opted for after you have reached retirement age.

Periodic Distributions

These types of distributions are annuity or pension payments that are paid on a regular basis, such as weekly, monthly, or yearly, to the employee or beneficiary for a period that is longer than a year.

Click on the next page to discover more details about these rules for tax withholding!