Turning 72 is a milestone for many, and it can also prompt questions about changes in tax laws and retirement account withdrawals. One of the most common questions asked by those who are 72 and over is, “What is the minimum withdrawal from an IRA at age 72?” This article will provide an overview of the minimum withdrawal requirements from an IRA at age 72, including the implications of withdrawing too little or too much, as well as possible strategies to consider.
What Is the Minimum Withdrawal from IRA at Age 72?
Beginning in 2020, individuals who are 72 years or older must take a Required Minimum Distribution (RMD) from their IRA each year. RMDs are calculated using your life expectancy, account balance, and IRS tables. The minimum withdrawal amount is based on the total amount of money in all of your traditional IRAs.
Calculating the RMD Amount
The amount of your RMD depends on your age, the fair market value of your IRA account, and IRS tables. Here is the formula:
- Determine the fair market value of your IRA account on December 31 of the previous year.
- Divide the value of your IRA account by the applicable life expectancy factor from the IRS’s Uniform Lifetime Table.
- This will yield the amount of your RMD for the year.
Deadlines for Taking RMDs
The deadline for taking your RMD depends on when you turn 72. If you turn 72 before the end of this calendar year, then you must take your RMD no later than April 1 of the following year. If you turn 72 during the calendar year, then you must take your RMD no later than December 31 of that same year.
Penalties for Not Taking RMDs
If you do not take your RMD by the deadline, then you will be subject to a 50% penalty on the amount that you should have withdrawn. This penalty is in addition to any taxes that you may owe on the amount. Therefore, it is important to calculate and take your RMD each year.
Related FAQ
What is the minimum withdrawal from IRA at age 72?
Answer: Starting in 2020, the minimum required distribution (RMD) from an individual retirement account (IRA) account is the amount calculated by dividing the IRA balance as of December 31 of the prior year by the life expectancy of the IRA owner (or their designated beneficiary) as specified in the IRS’s single life expectancy table. For 2020, the minimum required distribution for those aged 72 is 3.65%. This means that a person aged 72 must withdraw at least 3.65% of their IRA balance each year.
What are the consequences of not taking the required minimum withdrawal?
Answer: Failing to make the required minimum withdrawal from an IRA account can incur significant financial penalties. The IRS will assess a 50% excise tax on the amount not withdrawn as required. In addition, the IRS may also assess additional taxes and/or interest for not withdrawing the required amount.
Are there exceptions to the required minimum withdrawal?
Answer: Yes, there are exceptions to the required minimum withdrawal from an IRA account. Individuals who are still working past the age of 72 and contributing to an employer-sponsored retirement plan may be able to delay their minimum required distribution until they are no longer working. In addition, individuals who have converted a traditional IRA to a Roth IRA are also not subject to the required minimum withdrawal.
Can IRA withdrawals be taken early?
Answer: Yes, IRA withdrawals can be taken early, although there may be financial penalties associated with the withdrawal. Withdrawals taken before the age of 59 ½ incur a 10% early withdrawal penalty in addition to any applicable taxes. Additionally, withdrawing funds early can affect the taxation of the withdrawal and may result in a higher tax liability.
How do I calculate my required minimum withdrawal?
Answer: The required minimum withdrawal from an IRA account can be calculated by dividing the IRA balance as of December 31st of the prior year by the life expectancy of the IRA owner or their designated beneficiary, as specified in the IRS’s single life expectancy table. The IRS also provides an online calculator that can be used to help calculate the required minimum distribution.
How often do I need to take a required minimum withdrawal?
Answer: The required minimum distribution must be taken at least once a year. Generally, the RMD must be taken by December 31st of the current year. However, individuals who turn 72 in the current year have a grace period until April 1st of the following year to take the required minimum distribution.
Concluding, it is clear that the minimum withdrawal from an IRA at age 72 is determined by the IRS and is determined by taking a percentage of the account balance or the required minimum distribution (RMD). By understanding the minimum withdrawal at age 72, you can effectively manage your financial plan and ensure that you have enough money to last throughout your retirement years.

Andrew Terry is a highly respected economist, who received their graduate education at Harvard University. They have built a reputation as a thought leader in their field, with a particular focus on precious metals investing. Their work has been widely cited in academic journals and publications, and they are frequently invited to speak at conferences and events around the world.