At what age must Required Minimum Distributions (RMDs) be taken from retirement accounts?

Required Minimum Distributions (RMDs) must be taken from retirement accounts starting at age 73 for individuals who turned 72 after December 31, 2022. This change stems from the SECURE 2.0 Act, which raised the age for RMDs from 72 to 73 to reflect longer life expectancies and provide individuals with added flexibility in managing their retirement savings.

Prior to this amendment, the age for beginning RMDs was set at 70½ and later adjusted to 72. However, it's important to note the specifics; those who were already subject to RMD rules before the SECURE 2.0 Act change would still follow the previous guidelines reflecting age 72. The adjustment to age 73 benefits younger retirees who have more time before they are required to start distributions from their retirement accounts.

Understanding this age threshold is critical for retirement planning and tax strategies, as failing to take RMDs can result in substantial penalties.