When must Required Minimum Distributions (RMD) from a traditional IRA begin?

Required Minimum Distributions (RMDs) from a traditional IRA must begin on April 1st of the year following the account holder reaching the age of 70.5. This requirement is established by the Internal Revenue Service (IRS) to ensure that individuals begin to withdraw funds from their retirement accounts after they have had the opportunity to grow tax-deferred for many years.

Since the first RMD is due by April 1st of the year after turning 70.5, this allows individuals to delay their first withdrawal for a short period, giving them a little extra time for their investments to potentially grow. Subsequent RMDs must be taken by December 31st of each year thereafter.

The other options do not align with IRS rules concerning RMDs for a traditional IRA. For example, distributions do not begin immediately upon opening an account and are not tied to the age of 65 for RMD requirements. Understanding these timelines is critical for managing retirement funds effectively and for compliance with IRS regulations.