Within the year a plan owner turns 70 ½ years of age, s/he is required to start taking required minimum distributions (RMDs) annually from their plan UNLESS they retire after reaching that age. If plan owners retire after this age, they can wait to take RMDs during the year they retire. Failing to take distributions on time can cause severe penalties by the IRS.

** Roth IRA owners are not required to take RMDs.