When should I start taking required minimum distributions?

If you have a 401(k) and a traditional IRA then you’re probably aware of required minimum distributions, also known as RDMs. Thanks to the SECURE act, you can hold off withdrawing money from these accounts until you’re 72. Before, seniors were obliged to do so at 70½.

This is particularly good for those who don’t want to tap into these accounts too early, especially seniors who are still able to work and chose to do so, even well past the usual retirement age.

At first, you’ll need to withdraw 3.65%, but the percentage will go up on a yearly basis. As such, at 80 you’ll withdraw 5.35% and at 90, it’ll be 8.77%. If you’re ever unsure about percentages you can look for an RDM calculator online.