When to Make Withdrawals From Retirement Accounts

The government is happy to let you save money tax-free in a retirement account -- but you have to start withdrawing money from the account when you turn 70½.

The Required Minimum Distribution (RMD), as the Internal Revenue Service calls it, is the minimum amount you are required to withdraw each year from your retirement account. The first withdrawal is required in the calendar year that you turn 70½ -- the year you turn 70 if your birthday is before June 30 -- and you must make additional minimum withdrawals in every subsequent year.

Even if you retired at 65 and were taking a little bit out each year, there is a mandatory minimum once you turn 70½. ...