Chartered Retirement Planning Counselor (CRPC) Practice Exam 2025 - Free CRPC Practice Questions and Study Guide

The required beginning date (RBD) for IRA distributions is set as April 1 following the year in which the account holder reaches the age of 70½. This means that once you turn 70½, you have until April 1 of the following year to start receiving minimum required distributions from your traditional IRA.

This requirement was established to ensure that individuals begin to draw down their retirement savings and pay taxes on those withdrawals rather than allowing funds to remain in the account indefinitely. It's important to note that this rule applies to traditional IRAs and certain other retirement accounts, which differ from Roth IRAs since they don't require distributions during the account owner's lifetime.

The other choices misstate the age or the timeline associated with the required beginning date. For instance, the age of 70 is outdated since the law now specifies 70½ due to previous adjustments in retirement ages. The age of 75 is not applicable for current RBD calculations based on existing regulations as of the latest guidance. Thus, the specified age of 70½ is crucial in determining the correct RBD for IRA distributions.