RMD stands for Required Minimum Distributions. While you may start to withdraw monies from your IRA account upon reaching age 59 ½, you must start receiving RMDs by April 1st of the year following the year you reach age 70 ½.

The RMD changes each year and is determined by dividing the account balance as of December 31st of the previous year by the applicable IRS life expectancy tables. As a general rule, the older you get, the more you must withdraw. Your IRA trustee or administrator can assist with calculating your RMD.

If your IRAs are invested in real estate properties consider your situation as you approach age 70 ½. If your real estate is illiquid and you are facing the requirement of minimum distributions it may be time to sell one or more of the properties.

It is important to note that Roth IRAs are not subject to RMDs during the participant’s lifetime. They are, however, subject to RMDs after the owner’s death.