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When do RMDs start for a Traditional IRA?

Required Minimum Distributions (RMDs) begin once you reach the age set by the IRS for mandatory withdrawals. Currently, most individuals must start taking RMDs at age 73. (Note: The RMD age will increase to 75 for individuals who reach age 74 after December 31, 2032, under SECURE 2.0 Act provisions.) Your first RMD must be withdrawn by April 1 of the year after you turn 73; every year after that, withdrawals must be taken by December 31.

RMDs exist to ensure that tax-deferred funds are eventually taxed. Your distribution amount is calculated based on your previous year’s account balance and IRS life expectancy tables.

Missing an RMD can result in a 25% excise tax on the amount not withdrawn (reducible to 10% if corrected within 2 years), so it's essential to know when your required withdrawals begin and how much you must take.