When must required minimum distributions from a traditional IRA begin?

Required minimum distributions (RMDs) from a traditional IRA must begin by April 1 of the year following the account holder reaching the age of 70½. This regulation was established to ensure that individuals begin to withdraw a portion of their tax-deferred savings during their lifetime to pay taxes on those funds.

The age threshold of 70½ was particularly important prior to changes introduced by the SECURE Act in 2019, which subsequently raised the age for RMDs to 72 for those born after June 30, 1949. However, for individuals who turned 70½ before 2020, the previous rules apply, making it necessary for them to start distributions at that age.

This timeline is crucial for retirement planning, as failing to take RMDs as required by the IRS can result in significant penalties, highlighting the importance of understanding and adhering to these age-related requirements.