It’s time to tap the nest egg. If you  turned 70½ during 2013, in most cases, you must start to take the required minimum distributions (RMDs) from Individual Retirement Accounts (IRAs) and workplace retirement plans by Tuesday, April 1, 2014.

The IRS says the April 1 deadline applies to owners of traditional IRAs but not Roth IRAs. Normally, it also applies to participants in various workplace retirement plans, including 401(k), 403(b) and 457 plans.

The April 1 deadline only applies to the required distribution for the first year.  After you take the initial withdrawal you must do it by Dec. 31 in future years, including the first year.

So, for example, a taxpayer who turned 70½ in 2013 and receives the first required payment on April 1, 2014 must withdraw the second RMD by Dec. 31, 2014. 

This is what the IRS says about how to calculate your Required Minimum Withdrawal (RMD).

“Affected taxpayers who turned 70½ during 2013 must figure the RMD for the first year using their life expectancy on Dec. 31, 2013 and their account balance on Dec. 31, 2012. The trustee reports the year-end account value to the IRA owner on Form 5498 in Box 5. Worksheets and life expectancy tables for making this computation can be found in the Appendices to Publication 590.

Most taxpayers use Table III (Uniform Lifetime) to figure their RMD. For a taxpayer who turned 71 in 2013, for example, the first required distribution would be based on a life expectancy of 26.5 years. A separate table, Table II, applies to a taxpayer married to a spouse who is more than 10 years younger and is the taxpayer’s only beneficiary.”

EXCEPTIONS TO THE RULE

If you’re still working and your plan allows it,  the IRS says it’s likely that you can wait until April 1 of the year after you retire to start receiving these distributions. 

Employees of public schools and certain tax-exempt organizations with 403(b) plan accruals before 1987 should check with their employer, plan administrator or provider to see how to treat these accruals.

NOTIFICATION

Theoretically you should get notice from an IRA trustee.  They are supposed to report the amount of the RMD to the IRA owner or offer to calculate it for the owner.  The IRS says, “Often, the trustee shows the RMD amount in Box 12b on Form 5498. For a 2014 RMD, this amount would be on the 2013 Form 5498 that is normally issued in January 2014.”

It’s a good idea to find out exactly what you need to do and check with your accountant, broker, or financial institution  where you’re IRA is held.