On the first day of the April after an IRA account owner turns 70 1/2 years of age, “required mandatory distributions” must occur. These dates are important, but not for the owner of the account. Rather, the dates matter for the beneficiaries. Why? After the owner dies, the required beginning date determines the applicable distribution period.
RMDs must be taken from an IRA no later than December 31 of each calendar year. It does not matter if the account owner is working or retired. If you do not take out the RMD, this equates to a 50% penalty based on the RMD amount!!