I hear numbers like 70 ½, 72, 73, and 75.
When Must I Take Money from My IRA? The Confusion Unveiled!
Short answer is 73. However, starting IRA distributions earlier could be wiser to pay less taxes to Uncle Sam!
- 70 ½ was the rule for almost 50 years (1986 -2019). So anyone that was 70 ½ prior to 2019, they would have started their RMD.
- 72 was the rule from 2019-2022. So if you turned 72 during that time you would use that age to begin RMD.
- 73 is now the age until 2032 as to when you must start RMDs. (Age 75 will start in 2033.)
I never took any money from my IRA. I never knew the IRS had that rule that I had to take money! Reach out to us, we can help get you on the right track and possibly avoid penalties.
If you are under 59 ½ and need money from a retirement account or IRA, consult with us to help you avoid paying penalties.
At Tom Keuler CPA, we understand that IRA and retirement accounts (401(k)) can be ticking tax time bombs. (Regardless if you live or die, someone will be paying taxes on IRAs and retirement accounts) It may be advisable to consult with us, as starting distributions before age 73 could help you avoid a potentially significant tax bill down the road. Let us help you navigate the complexities of retirement planning and taxation to secure your financial future.