Required Minimum Distributions (RMDs) are mandatory annual withdrawals from tax-deferred retirement accounts (traditional IRA, 401(k), 403(b), 457(b), SEP IRA, SIMPLE IRA, traditional TSP). The IRS requires them so that pre-tax savings eventually get taxed.

Start age - Under SECURE 2.0:

• Born before 1951: RMDs started at age 70½ or 72 depending on year of birth.
• Born 1951 to 1959: RMDs start at age 73.
• Born 1960 or later: RMDs start at age 75.

How the planner handles RMDs - Each year you're at or past the applicable age, the engine takes the IRS-required distribution from your tax-deferred bucket, treats it as ordinary income for tax purposes, and routes the after-tax remainder according to your withdrawal rules. RMDs are taken regardless of whether you "need" the money - they happen for everyone with a positive tax-deferred balance at the applicable age.

Roth accounts - Roth IRA, Roth 401(k), Roth 403(b), and Roth TSP balances are not subject to RMDs during the original owner's lifetime. This is one reason Roth conversions can be attractive: they remove future RMD pressure from the converted dollars.

Legacy accounts - If you've marked a tax-deferred account as Legacy / Do not spend, RMDs still come out of it because they're legally required. The engine only excludes Legacy accounts from discretionary withdrawals.