SIE Exam Question 381: Answer and Explanation

Question: 381

Under the Internal Revenue Code as it pertains to traditional individual retirement accounts (IRA),

• A. required minimum distributions must begin upon reaching age 59 ½ years of age.
• B. required minimum distributions must begin upon reaching age 70 ½ years of age.
• C. required minimum distributions may begin upon reaching age 70 ½ years of age.
• D. required minimum distributions may begin upon reaching age 59 ½ years of age.

Correct Answer: B

Explanation:

B: Distributions from an IRA must commence by April 1st of the year following attainment of age 70 ½.