Current tax law specifies that once you reach age 70½ you must begin making taxable withdrawals from traditional IRAs and many other retirement plans. These minimum distributions are calculated annually based on your age, the account balance at the end of the previous year, marital status, and spouse\’s age. If you do not take the annual minimum distribution, you may be subject to a 50% penalty on your underpayment, plus ordinary income tax as the funds are withdrawn. Persons age 70½ and older may find this calculator most useful.
