I just retired. Do I have to begin taking money out of my IRA?

If your IRA is a Roth IRA, the answer is “No”.  You don’t ever have to withdraw funds from your Roth IRA.

However, if it is your Traditional, Rollover, Simple or SEP IRA, then you will need to begin withdrawing Required Minimum Distributions (“RMDs”) for the year in which you reach age 70 1/2.  You will then be required to withdraw RMDs for each subsequent year.

If you inherit an IRA, or certain types of retirement plans, from a deceased person, the “Age 70 ½ Rule” described above does not apply to you.  In that case, regardless of your age, you must begin withdrawing annual RMDs in the year following the year in which the deceased person dies.  The amount of each annual RMD will be based upon your remaining life expectancy under the IRS Single Life Table.

Note: Please see the item in our Glossary entitled “RMD (a/k/a Required Minimum Distribution)” for a more detailed description of the rules that apply for making required annual withdrawals from your IRAs.