Age

• IRA distributions begin when the owner reaches the age of 70.5 years. Once he turns 70, the retiree must withdraw his first minimum distribution by April 1 of the following year and then by December 31 in the years afterward.
  
  

Withdrawals

• The minimum distribution is calculated by dividing the overall value of the retiree's IRA by the distribution period, a number that represents life expectancy in three IRS tables: Table I or Single Life Expectancy, Table II or Joint Life and Last Survivor Expectancy, and Table III or Uniform Lifetime.
  
  

Penalty

• If the required minimum distribution is not withdrawn in a given year by the deadline, the IRS assesses a penalty fee equal to 50 percent of the amount the account owner should have taken out.
  
  

Installments

• IRA holders can arrange with the IRS to receive the minimum distribution in installments, as long as the total amount withdrawn for the year is equal to or more than the RMD.
  
  

WRER Act

• Signed by President George Bush in December 2008, the Worker, Retiree and Employer Recovery Act of 2008, also called the WRER Act, allows IRA owners to forgo the annual RMD and avoid the penalty that usually applies to missed withdrawals. The Act pertains to 2009 only, and minimum distribution rules resume in 2010.