Rmd is also included in insurance which stands for Required Minimum Distribution. To save the money for retirement the congress has already created separate accounts which allow or permit the person to deposit some of the money in that account without paying tax. And until the amount of money is in a separate account the tax on that money will not be paid up. But you cannot keep this amount in this account for a long time, you have to withdraw your money at the age of 70 and a half or 72 years of age.
If you become 70 and a half in 2019 and before 2019 then you receive the first distribution immediately and if you become 70 and a half in 2020 and after 2020 then you cannot withdraw your amount immediately, you receive the distribution on the 1st April when you become 72 years old and this withdrawal is called required minimum distribution (rmd).
