When must required withdrawals start for traditional IRAs?

Required withdrawals from traditional IRAs must start at age 70½. This requirement is known as Required Minimum Distributions (RMDs). The Internal Revenue Service mandates that account holders begin withdrawing a minimum amount from their IRAs each year once they reach this age to ensure that they eventually pay taxes on their retirement savings. This rule applies to individuals who turned 70½ on or after July 1, 2019, which was changed to age 72 under the SECURE Act. However, anyone born before this date must still adhere to the age 70½ rule for their RMDs.

It's important to note that failing to take these withdrawals can result in substantial penalties, highlighting the significance of adhering to this requirement for individuals with traditional IRAs.