If a customer takes interest off their IRA CD througout the year, can that be considered as their RMD for the year?

I would say "yes" as long as the total equals their RMD. If it doesn't, they may need an additional distribution.

This is out of my realm as I deal primarily with lending and I'm not quite sure what RMD stands for. I will assume Retirement Maximum Distribution or something to do with distributions. And I know enough about deposit regs to make me dangerous.

If I'm not mistaken at age 70 1/2 one must start drawing distributions from the principal. Hopefully someone with more IRA knowledge than I have will chime in.

The customer should calculate the RMD and determine whether the interest they have taken is sufficient for the year. If not, as previously stated, an additional distribution should be made prior to year end. Exceptions could be if this is their first year and they have the additional grace period to take the RMD or if they have taken the remainder of the RMD from an IRA with another financial institution.

Required Minimum Distribution, Dan.

Just a note of reminder in case there is ownership of multiple IRAs

There is an RMD for each IRA account the IRA participant may have (not including Roths). It may be taken from all the separate accounts or aggregated and taken from one if there is enough money in that one account. The IRA participant would normally execute a waiver at whatever banks they will not be taking it from.