I'm having trouble understanding exactly when I must make a required IRA withdrawal.

Your first required withdrawal is FOR the year in which you turn 70 1/2. It's based on the prior year-ending balance and your age at the end of your "70 1/2" year. You may delay taking this, and only this, distribution until April 1 of the following year. You must take the RMD for the following year during that calendar year.

Example. You turn 70 1/2 in 2012. You must take an RMD for 2012 between 1/1/2012 and 4/1/2013. You must take an RMD for 2013 between 1/1/2013 and 12/31/2013.

You have to look at your particulars, but to me it makes more sense to take your first RMD during your 70 1/2 calendar year. Continuing with the above dates, if you delayed you'd have RMD's for both 2012 and 2013 on your 2013 return, creating a spike in income. Also, your 2012 ending balance, used to calculate your 2013 RMD, would still include the money spoken for by the 2012 RMD.

Phil
Rule Your Retirement Home Fool