That First Distribution from Your IRA
What you need to know. February 25, 2020 When you are in your seventies, Internal Revenue Service rules say that you must start making withdrawals from your traditional IRA(s). In I.R.S. terminology, these withdrawals are called Required Minimum Distributions (RMDs).1 Generally, these distributions from traditional IRAs must begin once you reach age 72. The money distributed to you is taxed as ordinary income. (When such distributions are taken before age 59½, they may be subject to a 10% federal income tax penalty.)1 If you fail to make these withdrawals or take out less than the required amount, the I.R.S. will
February 25, 2020
