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Required Beginning Date (RBD)

The Required Beginning Date (RBD) is a term used in the Individual Retirement Account (IRA) industry in the United States. It refers to the date by which a holder of an IRA or a retirement plan must start taking required minimum distributions (RMDs) from their account.

In general, the RBD is April 1 of the calendar year following the calendar year in which the IRA owner reaches age 72, according to the SECURE Act of 2019. This applies to traditional IRAs, SEP IRAs, and SIMPLE IRAs, as well as most employer-sponsored retirement plans.

However, if the IRA owner continues to work beyond age 72 and does not own more than 5% of the company they work for, they may be able to delay RMDs from their current employer’s retirement plan until they actually retire, a concept known as the “still working” exception.

Note that there are no required minimum distributions for Roth IRAs while the owner is alive.

Always consult with a financial advisor or tax professional for specific advice on retirement account distributions, as the rules can be complex and penalties for non-compliance can be substantial.