By when must traditional IRA distributions start?

Traditional IRA distributions must start by April 1st of the year following the year an individual turns 70 ½. This requirement is set by the Internal Revenue Service (IRS) to ensure that individuals begin to withdraw their retirement savings, as traditional IRAs offer tax-deferred growth.

The age of 70 ½ is significant because it signifies the transition point at which the IRS mandates minimum distributions from retirement accounts to ensure that individuals begin using their savings rather than deferring taxation indefinitely. Failing to take these required minimum distributions can result in steep penalties, further emphasizing the importance of adhering to this deadline.

Other options reflect incorrect ages or conditions, as distributions are not linked to retiring or turning 65 but rather to the specific age of 70 ½, marking a pivotal point in retirement planning and financial management.