No, it is not new, and it does not appear on the 1099-R. It is a Required Minimum Distribution.
- If you have a 401-K of IRA, referred to as retirement accounts, the IRS requires you to take an RMD every year.
- The IRS requires RMDs to ensure that retirement savings are taxed.
- This is as opposed to a pension that is paid on a regular basis and typically ends upon death.
If you don't withdraw additional fund from your retirement accounts, the RMD is typically equal to the amount of your distribution.
Retirement topics - Required minimum distributions (RMDs)
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