Question:
❓At what age are you required to start taking money out of your traditional retirement accounts?
A) 65
B) 70½
C) 73
D) 75
Answer:
✅ C) 73
You have to start taking money out of a traditional IRA or 401(k) at age 73. These are called Required Minimum Distributions (RMDs)—the IRS won’t let that money grow tax-deferred forever, because they want their tax cut.
| Account type | RMDs required? |
|---|---|
| Traditional IRA / 401(k) | Yes—starting at age 73 |
| Roth IRA | No—exempt during the owner’s lifetime |
| Roth 401(k) | No—exempt as of 2024 |
Skip an RMD and the penalty is steep: up to 25% of what you should have withdrawn (and as little as 10% if you fix it quickly). Planning ahead lets you take the money out on your terms—instead of being forced to withdraw more than you need, or get taxed more than you want.
Making your retirement income last takes a plan—see retirement strategies.
