The IRS defers taxes on many retirement accounts. But at a certain point, the agency wants to start collecting its due.
The way it does so can feel like an abrupt change, especially if you’ve spent decades considering those accounts off limits. You must start taking required minimum distributions, or RMDs, at age 70½.
KNOW THE RULES
RMDs are required from tax-deferred retirement plans: traditional individual retirement accounts, SEP and Simple IRAs, and workplace plans like 401(k)s. They’re not required from Roth IRAs.
If you’re still working at 70½, you can delay distributions from your employer plan until you retire, unless you own 5 percent or more of the business.