You generally must start taking withdrawals from your IRA, SIMPLE IRA, SEP IRA or retirement plan account when you reach age 70 1/2, according to the IRS. And you must take your required minimum distribution, which is the least possible amount you must withdraw from your account each year, by Dec. 31. This applies to inherited IRAs and inherited Roth IRAs.
If you don’t take distributions, or they aren’t large enough, you’ll have to pay a 50 percent excise tax on the amount not distributed. And don’t wait until the end of the year to take your RMD. Do it in early December or late November, if not sooner, to avoid any chance of having to pay the excise tax.7 September 2019