Question: When must I start withdrawing money from my IRA?
Answer: Upon turning age 70 1/2, you must begin withdrawing money from your traditional IRA as follows:
- Your first withdrawal can either be taken by December 31 of the year you turn age 70 1/2, or it can be postponed up until April 1 of the following year.
- Your second withdrawal must be taken by December 31 of the year after you turn age 70 1/2.
- In each subsequent year, you must withdraw at least the required minimum amount by December 31.
If you fail to take your required distribution on time, you'll face a 50% penalty on the amount that should have been withdrawn.
Note: There is no requirement to make withdrawals from a Roth IRA at age 70 1/2.