Taxpayers are required to begin receiving distributions from their qualified plan by April 1 of the calendar year following the year in which they:

• Reach age 70 1/2, or
  
  
• Retire from their place of employment

In other words, taxpayers who turn 70 1/2 (or retire) during 2008 must take their first distribution (for 2008) no later than April 1, 2009, and their next distribution (for 2009) no later than December 31, 2009. In subsequent years, the taxpayer must receive the minimum distribution by December 31 of each year.

These required distributions are called minimum distributions.

	For IRAs, it doesn't matter whether the taxpayer is employed. Distributions must begin by April 1 of the year following the calendar year in which the taxpayer reaches 70 1/2.