When must distributions from a qualified plan begin according to regulations?

Distributions from a qualified plan are mandated to begin by April 1 following the year the participant reaches age 72 due to required minimum distribution (RMD) rules set by the Internal Revenue Service (IRS). This regulation ensures that individuals start withdrawing funds from their retirement accounts to begin paying taxes on these funds, as retirement accounts often grow tax-deferred.

The age threshold is significant since it reflects a balance between enabling individuals to save long-term and ensuring the government collects tax revenue on the accumulated funds. If participants fail to take their RMDs, they face substantial penalties, reinforcing the importance of this requirement.

Other options provide various events or ages when distributions might start; however, they do not align with the IRS regulations concerning mandatory distributions from qualified plans. For example, while distributions can occur when a participant retires or reaches age 65, those events do not dictate the regulatory requirement to start withdrawals if the participant continues to delay them. Hence, understanding these specific timing rules is crucial for financial planning and compliance with tax laws.