What is a Required Minimum Distribution (RMD)?
The owner of an IRA is required to take a minimum distribution from their IRA account or accounts in the year in which they turn 70 ½ years of age. The initial percentage is 27.4 percent of the total amount in the IRA, and that percentage decreases every year thereafter. RMDs are not required from Roth IRAs until after the death of the owner. The funds taken as an RMD are taxable.
Under the DOL fiduciary rule, advice on how to utilize an RMD that has not yet taken place is fiduciary advice regarding a distribution from a plan or IRA. It is mere education to explain the RMD requirements, but it is fiduciary advice to recommend which assets to sell to generate liquidity for the distribution.