Required Minimum Distributions: a required minimum distribution, that's something when you turn age 70 and a half in the United States, you're typically required to take money out of your traditional IRA or 401(k), some type of retirement plan that you have set up other than a Roth IRA. Why can that derail your retirement? Because people might not realize that it's taxed as income and what effect would that have on you is twofold. Are you ready?