Must I make withdrawals from my IRA?

Yes, you must make a withdrawal by April 1 following the year you reach age 73. The amount, which must be withdrawn, is based on the balance and your life expectancy (joint life expectancy of you and your beneficiary). The minimum amount must be distributed every year or the IRS will charge a 50% penalty on the required minimum distribution. This is based on the theory that an IRA is a tax-deferred account for the purpose of funding your retirement.