If you have tax-deferred retirement accounts such as a traditional IRA or most 401(k) plans, you’re required to begin taking required minimum distributions, or RMDs, once you turn 70 1/2 years of age. Each year, your RMD is determined by your age and account’s value, and the penalty for not taking your RMD is quite harsh.
If you have savings in tax-deferred retirement accounts, such as a 401(k) or traditional IRA, you are required to start taking withdrawals from these accounts after you reach 70 ½ years of age. These are known as required minimum distributions, or RMDs.