2006-08-22 10:39:21 · 3 answers · asked by Anonymous in Business & Finance ➔ Investing
If you have any money in an IRA, by age 70-1/2 you have to begin making withdrawals, period (not exactly, you can leave it alone but there are penalties, something you don't want especially if your money hasn't made any money). At issue isn't the profit but the purpose. This money has been sheltered from taxes for you to use in your old age. If you aren't using the money in your old age, Uncle Sam wants his piece.
2006-08-22 10:45:45 · answer #1 · answered by Rabbit 7 · 0⤊ 0⤋
Beginning at age 70 1/2 you are required to take required minimum distributions or you will see a 50% penalty from the RMD. This does not matter whether your investments appreciate or not. Basically Uncle Sam wants his money!
2006-08-22 12:43:02 · answer #2 · answered by Anonymous · 0⤊ 0⤋
There is a way to avoid it, sort of. You can roll the IRA into a Roth and pay taxes on the earnings. With a Roth IRA, there is no limit to withdrawl except heirs have to start withdrawing when they are 35 or older.
2006-08-22 12:03:03 · answer #3 · answered by gregory_dittman 7 · 0⤊ 0⤋