Final answer:
Qualified retirement plans, like 401(k)s and 403(b)s, require distributions to begin by April 1 following the year you turn 72 or when you retire, whichever is later, unless you're still employed and own less than 5% of the business.
Step-by-step explanation:
Distributions from a qualified plan such as 401(k)s and 403(b)s must begin by April 1 of the year following the calendar year in which you turn 72 (formerly 70½ before the SECURE Act passed in December 2019) or, if later, the year in which you retire.
However, if the plan allows, you may be able to delay taking required minimum distributions if you continue to be employed and you do not own more than 5% of the business you work for. In the case of traditional defined benefit pension plans, these must also start by age 72, but there are many variables to consider, such as the plan's specific rules and whether you continue working for the same employer. Keeping in mind the inflation costs, the real rates of return on these retirement accounts are crucial for ensuring that retirees have sufficient funds during their retirement years.