Series 7 Exam Question 268: Answer and Explanation

Question: 268

What is the required beginning date (RBD) for traditional IRAs?

  • A. The year after the investor reaches the age of 59½
  • B. The year the investor turns the age of 72
  • C. April 1st of the year after the investor reaches the age of 72
  • D. April 15th of the year after the investor reaches the age of 72

Correct Answer: C

Explanation:

C. Withdrawals must begin by April 1 of the year after the investor turns age 72. At that point, the investor has to take a required minimum distribution (RMD), which can be determined by looking at the IRS's required minimum distribution worksheet.

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