IRS regulations dictate that you cannot keep retirement funds in your account indefinitely. You generally have to start taking withdrawals from your 401(k), 403(b), 457(b), IRA, and/or defined contribution retirement
plan account(s) when you reach age 70½. However, the December 20, 2019, SECURE Act made a few changes to those rules. Now, if your 70th birthday is July 1, 2019, or later, you do not have to take withdrawals until you reach age 72.
Your required minimum distribution (RMD) is the minimum amount you must withdraw from your account each year. RMD from 401(k), profit-sharing, 403(b), or other defined contribution plan generally must begin April 1 following the later of the calendar year in which you reach age 72 (age 70½ if born before July 1, 1949), or retire.
RMD does not prevent you from withdrawing more than the minimum required. Your withdrawals will be included in your taxable income except for any part that was taxed before (your basis) or that can be received tax-free (such as qualified distributions from designated Roth accounts).
Find out more about RMD by visiting the IRS RMD website or reviewing this chart comparing IRA and defined contribution plan RMDs.
