When must Required Minimum Distributions (RMDs) begin for a SEP IRA?

Required Minimum Distributions (RMDs) for a SEP IRA must begin at age 72. This age was established under the Setting Every Community Up for Retirement Enhancement (SECURE) Act, which went into effect in January 2020. The SECURE Act raised the age from 70½ to 72 for individuals who reach the age of 70½ after December 31, 2019.

Individuals who have a SEP IRA must start taking RMDs by April 1 of the year following the year they turn 72. This requirement is designed to ensure that individuals begin to withdraw funds from their tax-advantaged accounts, thus making sure that taxes are eventually collected on these funds.

While some might think of the age 70 given previous laws, this age only applies to people who reached it before the SECURE Act took effect. Therefore, the correct answer represents current legislation that affects the timing of these distributions for individuals following the new guidelines. The other ages listed, including 68 and 75, do not align with the current requirement for RMDs.