Age for Starting RMDs
Question: At what age are holders of traditional IRAs and 401(k)s required to start taking required minimum distributions (RMDs)?
Answer: Age 72.
Pursuant to the Secure Act passed by the Senate, the required minimum withdrawal, or RMD, age has been raised to 72 from 70½, effective for individuals who have reached age 70½ after December 31, 2019. If were you born before 1949, then you are already taking RMDs and the new rule does not impact you. The age of 70½ was first applied almost 60 years ago (the early 1960s) but the number has been adjusted to reflect the increased life expectancy.
How much will account owners be taking from retirement plans? They will start at 3.65%, and the percentage will increase every year. At age 80, it’s 5.35%. At 90, it’s 8.77% and so on. If you want to find out the exact percentages, you can use available online RMD calculators.
