Series 6 Practice Exam 2025 – Complete Exam Prep Resource

Individuals who turn 70½ must take their first Required Minimum Distribution (RMD) from their retirement accounts by April 1st following that milestone age. The purpose of the RMD requirement is to ensure that individuals begin to withdraw a portion of their tax-deferred retirement savings, as the government wishes to collect taxes on these funds over time.

The requirement applies to various types of retirement accounts, including traditional IRAs and 401(k) plans. Failing to take the RMD can result in significant penalties, typically equal to 50% of the amount that should have been withdrawn.

The other options do not pertain to this requirement. Making a first IRA contribution and last tax deduction are not associated with a specific age and do not have a mandated deadline like the RMD. Similarly, a final rollover is not required at this age; individuals can choose to roll over funds from one retirement account to another without such strict deadlines. Thus, the requirement for individuals to take their first RMD by April 1st after reaching age 70½ is a crucial and specific stipulation that governs retirement distributions.