2007-04-26 00:58:21 · 5 answers · asked by Al Money 1 in Business & Finance ➔ Taxes ➔ United States
Any amount you wish -- all or nothing or anything in between.
At age 70 1/2, you must start taking mandatory distributions based upon your actuarial lifetime remaining.
2007-04-26 01:50:21 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 0⤋
The entire amount. The better question would be, how much can I withdraw without going into a higher tax bracket? The idea of putting money into an IRA was to reduce taxes while in a higher bracket and/or delay paying taxes on that money until you retire. I had a client this year who got a buy out which put him at $200,000 on his W-2 and also pulled $30,000 out of his retirement account. He had been in the 25% bracket when he put the money in, but got taxed at 28% (plus the AMT he got stuck with). He actually paid more taxes on his retirement account money than he would have had he paid tax on it the year he earned it. Very important to consult a financial/tax advisor (one who doesn't get paid by selling you mutual funds...) before making these kinds of decisions. If you are still working after 59 1/2, that will increase the tax burdon. If you are married and your spouse works, it can affect your taxes paid on your IRA withdrwals as well. The amount you WANT to take out is very dependent on what you individual situation is.
Ditto on the required pull out at 70 1/2.
2007-04-26 10:03:23 · answer #2 · answered by Patrick S 3 · 1⤊ 0⤋
After 59-1/2 you can take out as much as you want without paying the 10% penalty you'd have paid if you weren't 59-1/2. In either case you'd pay income taxes on the withdrawal as ordinary income though. This assumes that you are taking money from a deductible traditional IRA.
2007-04-26 23:20:32 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
The amount which can be withdrawn is unlimited to the extent of the IRA balance after you reach age 55 1/2, however remember that the amount withdrawn is taxable as ordinary income (unless it is a Roth IRA). Many states do not tax retirement income but that depends on the state you live in. Also, withdrawals will be required once you reach 70 1/2.
2007-04-26 09:33:01 · answer #4 · answered by msbrau36 2 · 1⤊ 2⤋
there's no rule that limits the amount you can withdraw,, never was. Before 59 1/2 there was a additional 10% penalty on top of income tax. after 59 1/2 no penalty,, just income tax. The limit is the amount you have in the account.
2007-04-26 08:38:05 · answer #5 · answered by Jo Blo 6 · 0⤊ 0⤋