Required Minimum Distribution (RMD)
Annual minimum withdrawal required from Solo 401(k) starting at age 73 (SECURE 2.0 Act).
Definition
Required Minimum Distributions (RMDs) from a Solo 401(k) start at age 73 (raised from 72 by SECURE 2.0 Act, will rise to 75 in 2033). Failure to take an RMD triggers a 25% excise tax (reduced to 10% if corrected timely). RMDs reduce plan assets and may move a plan back below the $250,000 threshold.
Why it matters
For IRS Form 5500-EZ, this term helps decide which records, dates, values, or review questions belong in the packet.
How the tool uses it
Solo 5500 treats this as a review signal. The user enters the facts, checks the source-linked explanation, reviews the packet, and files through the official channel when the supported case still fits.
When to check the source
Check the official source when the answer depends on eligibility, late filing relief, official correspondence, valuation, or a fact you cannot verify from your own records.
Source and review date
Last reviewed: . Use the linked source for the official wording behind this term.
Official source: IRS Form 5500-EZ filing notices