Craig Wear, CFP®Craig Wear, CFP® | Expert in Roth Conversions & Tax-Efficient Retirement Strategies for IRA Millionaires

Waiting until 72 to withdraw money

22 Jul 2025 · 1 min

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Craig Wear, CFP® argues that waiting until age 72 to take required minimum distributions (RMDs) primarily benefits the IRS because larger account balances at later ages produce bigger tax bills. He notes individuals can begin penalty-free withdrawals from retirement accounts at age 59½ and suggests that taking distributions earlier can sometimes be a smart tax-management strategy to stay in control of future taxes.

Questions this video answers

72 years old.

59½ years old.

Why the IRS wants you to wait. So everyone says to wait until 72 years old for required minimum distributions or RMDs. But guess what? That's exactly what Uncle Sam of the tax code wants you to do. Because the longer you wait, the bigger the tax bill. So it's not about helping you, it's about collecting more tax. You can actually start taking withdrawals at 59 and a half years old without any penalties. And sometimes taking money out early is a smart move, especially if you want to stay in control and reduce future taxes.