• Required minimum distributions must be reported on your taxes.tax forms image by Chad McDermott from Fotolia.com
  
  The Internal Revenue Service (IRS) subjects only tax-deferred IRAs to required minimum distributions. Tax-deferred IRAs include traditional IRAs, simplified employee pension (SEP) IRAs and savings incentive match plan for employees (SIMPLE) IRAs. The IRS does not require distributions from Roth IRAs, which means the money can continue to grow tax-free as long as you want it to remain in the account.
  
  

Time Frame

• You must start taking required minimum distributions during the year that you turn 70-1/2. For the first year, you have until April 1 of the following year to take your required minimum distribution. In future years, you must take it by Dec. 31 of that year. For example, if you turn 70-1/2 in August 2011, you would have to take your first required minimum distribution by Apr. 1, 2012. Your required minimum distribution for 2012 would have to be taken by Dec. 31, 2012.
  
  

Size of Distributions

• The IRS bases the size of your required distribution on your life expectancy and your account's value. Each year, the IRS publishes life expectancy tables in the appendix of IRS Publication 590. Most people use the uniform lifetime table to determine their life expectancy. However, if your spouse is at least 10 years younger than you, use the joint and last survivor table instead. Once you have determined your life expectancy, divide the value of your IRAs subject to required minimum distributions as of Dec. 31 of the previous year by your life expectancy to find your required minimum distribution amount.
  
  

Penalties

• If you do not take the required amount out of your account each year, the IRS imposes a 50 percent tax penalty on the amount not withdrawn. For example, if you were supposed to take a $5,000 distribution but did not withdraw any money, you would have to pay a $2,500 penalty. Also, required minimum distributions are not exempt from income taxes.