When must traditional individual retirement annuity (IRA) distributions begin?

Traditional individual retirement annuity (IRA) distributions must begin by April 1st of the year following the participant's 70 1/2 birthday. This requirement is part of the IRS rules designed to ensure that individuals begin to withdraw from their retirement accounts and pay taxes on those distributions. The age of 70 1/2 is significant because it is the point at which the IRS enforces required minimum distributions (RMDs) to prevent individuals from deferring taxes on their retirement savings indefinitely.

Starting distributions by the specified deadline allows both the account holder and the IRS to recognize the income generated by the annuity, ensuring compliance with tax regulations. It's important to note that if distributions are not started by this deadline, the account holder may face substantial penalties on the amount that should have been withdrawn.