2006-12-20 06:34:13 · 4 answers · asked by Ron 1 in Business & Finance ➔ Taxes ➔ United States
Required minimum distributions apply each year beginning with the year the account owner turns age 70 1/2. The required minimum distribution for each year is calculated by dividing the IRA account balance as of December 31 of the prior year by the applicable distribution period or life expectancy. An account owner can determine his or her applicable distribution period or life expectancy by using the Tables in Appendix C of Publication 590. Table I is used by beneficiaries. Table II is for use by owners who have spouses who are both the IRA's sole beneficiary and who are more than 10 years younger than the owner. Table III is for use by all other owners.
2006-12-20 06:38:46 · answer #1 · answered by Barkley Hound 7 · 2⤊ 5⤋
This only hold true for Traditional IRAs. You will owe taxes on them as well. The Rule 70 1/2 says that you must take the minimum withdrawal requirement during the year you turn age 70 1/2 or by April 1 of the year after you turn age 70 1/2. For example, if you become age 70 1/2 in 2006 and don't make any withdrawals, you have until April 1, 2007 to take the minimum withdrawal requirement. If you fail to do so, you will be taxed at 50% on any amount you have not withdrawn up to the minimum.
For Roth IRAs, the rule 70 1/2 does not apply. You can hold on to your assets for life and give them to your heirs (your kids)
2006-12-20 06:43:08 · answer #2 · answered by Anonymous · 4⤊ 2⤋
What percent is the mandatory withdrawal at 75 years old
2013-12-25 07:35:02 · answer #3 · answered by Dale 1 · 0⤊ 0⤋
Yes that is true or were you trying to ask a question?
2006-12-20 06:36:13 · answer #4 · answered by Texan 6 · 2⤊ 3⤋