Watch Out, Boomers, Here Comes 70

About 75 million baby boomers began turning 70 this year. If you’re among them, there are critical decisions to make about your retirement accounts and finances in general.

Why is 70 the magic number? U.S. tax law stipulates that you must take your first required minimum distribution (RMD) from your individual retirement account and 401(k) accounts in the year you turn 70½ (or up to April 1 of the following year) and pay income taxes on it. Those who don’t comply face a 50 percent penalty on that amount. “This is a major shift if you’re a boomer,” says retirement adviser Ed Slott, founder of IRAHelp.com. “All this time you’ve been taught to build, save, invest, sacrifice. Suddenly the government at age 70½ says, ‘Now we’re sick and tired of waiting for you to drop dead. We want our money back.’ ”