The minimum amount you must withdraw from your SEP/SIMPLE/traditional IRA (not a Roth IRA), 401(k), profit-sharing, 403(b), or other defined contribution plan each year is called your Required Minimum Distribution (RMD).
If your 70th birthday is July 1, 2019, or later, you don’t have to take withdrawals until you turn 72 (73 if you reach age 72 after Dec. 31, 2022).
You must start taking your RMD by April 1 of the first calendar year after any of these scenarios, whichever happens last:
- You turn 70½ if you were born before July 1, 1949, or you turn 72 if you were born after June 30, 1949.
- You turn 73 after 12/31/22 or were born on or after Jan. 1, 1950.
- You retire from employment with the employer maintaining the plan.
However, the plan may require you to begin receiving distributions by April 1 of the year after you turn 72 (73 if you reach age 72 after Dec. 31, 2022), even if you haven't retired.
If you delay the first distribution until the following April 1, you'll have two distributions that year, as the second distribution is due by December 31.
You can avoid including income from both of these distributions in the same year if you take your first RMD withdrawal by December 31 of the year you actually turn 72.
If you reach age 72 in 2023, your first RMD for 2024 (the year you reach 73) is due by April 1, 2025.
