At what age are traditional IRA account holders required to take minimum distributions?

Traditional IRA account holders are required to start taking minimum distributions at age 72. This requirement is a part of the tax regulations set forth by the Internal Revenue Service (IRS) to ensure that individuals do not defer taxes on their retirement savings indefinitely. The rule mandates that account holders begin to withdraw a minimum amount from their retirement accounts annually, which is referred to as the Required Minimum Distribution (RMD).

The rationale behind this age requirement is that it allows individuals to begin utilizing their savings for retirement income while also fulfilling tax obligations on the previously tax-deferred earnings. This age was adjusted in 2020 from 70½ to 72 under the SECURE Act, reflecting changes made to accommodate evolving retirement planning needs.