Question

Required minimum distributions (RMDs) from a traditional IRA account must:

A. Begin within one year of when the individual retires
B. Be completed within a 10-year period
C. Begin by April 1 of the year following the one in which the individual turns 59 1/2
D. Begin by April 1 of the year following the one in which the individual turns 72

Answer 1

Required minimum distributions (RMDs) from a traditional IRA must start by April 1 of the year after turning 72, which ensures the retirement savings are eventually used for their intended purpose and not just to avoid taxes.

Step-by-step explanation:

Required minimum distributions (RMDs) from a traditional IRA account must begin by April 1 of the year following the one in which the individual turns 72. RMDs ensure that savings in an IRA are used for retirement and not just accumulated to be passed on as an inheritance, tax-deferred. Prior to the SECURE Act of 2019, the starting age for RMDs used to be 70½, but this has since been updated.

To summarize, once you turn 72, you're generally required to start withdrawing funds from your traditional IRA to meet the RMD rules set by the IRS. This is different from Roth IRAs, which do not require distributions during the owner's lifetime.