Under current law, at what age do traditional IRAs/401(k)s typically require minimum distributions to begin?

Under current law, at what age do traditional IRAs/401(k)s typically require minimum distributions to begin?

• A. 70
• B. 65
• C. 75
• D. 72

Answer: (D)

Required minimum distributions are the mandatory withdrawals you must take from traditional IRAs and 401(k)s once you reach a certain age, ensuring tax is paid on the deferred balances over time. The standard starting point for most people is 72. This means you must begin taking distributions no later than the year you turn 72, with the first distribution due by April 1 of the year after you turn 72. After that, you take one distribution each year by December 31, and the amount is determined using IRS life-expectancy tables based on your account balance. The other ages listed don’t reflect the typical threshold for starting RMDs under current guidance.

Required minimum distributions are the mandatory withdrawals you must take from traditional IRAs and 401(k)s once you reach a certain age, ensuring tax is paid on the deferred balances over time. The standard starting point for most people is 72. This means you must begin taking distributions no later than the year you turn 72, with the first distribution due by April 1 of the year after you turn 72. After that, you take one distribution each year by December 31, and the amount is determined using IRS life-expectancy tables based on your account balance.

The other ages listed don’t reflect the typical threshold for starting RMDs under current guidance.