Required Minimum Distributions (RMDs) have been around for decades. They are the minimum amounts a retirement plan account holder must withdraw or distribute annually, starting with the year they reach 72. Retirement plan participants and IRA account owners must calculate and take the correct RMD amount on time each year. The IRS imposes stiff penalties for any failure to take RMDs. For defined contribution plan participants, or IRA owners, who passed away after December 31, 2019, the entire balance of the participant's account must be distributed within ten years. The IRS allows an exception for a surviving spouse, a chronically ill or disabled person, or someone not more than ten years younger than the IRA holder or employee. The 10-year rule applies whether or not the person passes away before, on, or after the required beginning date, currently age 72.