At what age do individuals generally need to begin taking RMDs from their retirement accounts?

Individuals generally need to begin taking Required Minimum Distributions (RMDs) from their retirement accounts at age 73. The change to this age was part of the SECURE Act 2.0, which updated the rules governing retirement savings and distributions. Previously, the age was set at 70½ and then later changed to 72, but further legislation has pushed it to 73 for individuals who turn 73 after December 31, 2022.

This adjustment allows retirees to keep their funds in their accounts for a longer period, potentially allowing for greater growth and compounding before withdrawals must be made. It is an important aspect of retirement planning, as understanding when RMDs kick in can significantly influence an individual’s tax situation and overall financial strategy in retirement.