Is There a Right Time to Take Your Required Minimum Distributions (RMDs)?

AI Briefing

• – Starting in 72 years old, Required Minimum Distributions (RMDs) require you to begin taking annual distributions from traditional IRAs and 401(k) accounts.
• – The IRS sets a life expectancy factor, which is used to calculate your RMD amount, and you'll need to take your first distribution by April 1st of the year after you turn 72.
• – Ignoring RMDs can result in penalties, including a 50% excise tax on the amount not taken, plus interest and income tax on the amount not taken.