Owners of traditional IRAs (including SEP-IRA and SIMPLE-IRA owners but excluding Roth IRA owners) must start taking required minimum distributions (RMDs) from their accounts the year they reach a specific age.
For those born 1951 through 1959, the RMD age is 73. Starting in 2035, the RMD age will increase to 75 for those born in 1960 or later. (People born before 1951 had to take their RMDs sooner than age 73.)
The RMD amount is based on your retirement account balance on December 31 of the previous year. The percentage you must withdraw is based on your age and gradually increases with age.
All but your first RMD must be taken by December 31 (but you can take an RMD anytime during the year). You can delay your first RMD to April 1 of the year following the year you reach 73.
But if you do this, you must take your age 74 RMD by December 31 of that year. This means you must take two RMDs that ... Log in to view full article.
