RMDs are minimum withdrawal amounts that must be taken annually by the plan or IRA owner. RMDs must begin within the year the plan owner turns 70 and 1/2 , or in the year of retirement if he or she retires after that age. IRA and Retirement plan participants and 401(k) owners are responsible for taking the correct amount of RMDs on time every year or may face stiff penalties. Roth IRA and Roth 401(k) owners do not have to take RMDs, as taxes should have already been paid on those contributed dollars. Calculating your RMDs is a collaborative effort between you and Rocket Dollar.