Beginning at age 72 (if you turned 70 and a half before 2020), or upon inheriting any IRA account for certain particular beneficiaries, the IRS mandates that most IRA owners take a portion of their tax-deferred assets each year. A mandated minimum distribution is what's referred to as that withdrawal (RMD). You can be subject to a 50% penalty tax on the amount you withdrew in excess of your RMD.
RMDs are intended to stop investments in IRAs from growing tax-deferred forever and passing to the IRA beneficiary. Depending on when the account owner died away, different regulations will apply to how beneficiaries of IRAs must pay RMDs.
Generally, IRA owners must take their first RMD by April 1 of the year following their 72nd birthday (or age 7012 if they turned that age before 2020); this date is known as their mandated commencing date (RBD).
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