Purpose of the minimum distribution rule.
The Required Minimum Distribution (RMD) rule ensures that retirement funds, which received tax deferral, are eventually taxed rather than deferred indefinitely.
Federal law threshold age.
Traditionally, federal law required RMDs to begin at age 70½.
(Note: While federal law has since changed the RMD age, licensing exams and many state outlines—including Maryland exam materials—still test 70½ as the correct answer.)
Why earlier ages are incorrect.
59½: Relevant for early withdrawal penalties, not RMDs.
62: Common Social Security age, not an RMD trigger.
65: Medicare eligibility age, not related to RMDs.
Maryland tax conformity.
Maryland generally follows federal retirement distribution rules for income taxation.
Conclusion.
For exam and regulatory purposes, minimum distributions begin at age 70½.
