If you are over 70-and-a-half years old or have inherited an Individual Retirement Account as a beneficiary you are required to take a minimum distribution by December 31st. Dave Lenius from Lenius Insurance and Financial says that once the IRS is involved, the consequences become expensive quickly. 

Your required minimum distribution is calculated as the account balance at the end of last year divided by your life expectancy given your age at the beginning of this year. Lenius encourages those who have to take a required minimum distribution to do so early in the year to avoid a last-minute rush in December.