john@hp-pcd.UUCP (john) (01/23/85)
<<< Does anyone know what the maxiumun age that you can withdraw money from an IRA is? Everything that I read says 59 1/2 to at least 70 1/2 and up to your "expected" life span. How is this decided and what is the current age that you can withdraw funds? I check some standard insurance tables and my life expectantcy at birth was 66 years. If you don't start withdrawing money until you retire at 65 and have to have it all out in 5 years then that could make a big difference in the tax rate that you have to pay. The life expectantcy for someone who has reached age 65 would be a lot higher than someone at age 0 but who decides? John Eaton !hplabs!hp-pcd!john
keesan@bbncca.ARPA (Morris M. Keesan) (01/25/85)
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There is NO maximum age for withdrawing from an IRA. There is a minimum
age, 59 1/2, before which you may not withdraw (without "substantial
penalties"), and there is a maximum age for NOT withdrawing, i.e. you must
begin to withdraw by the time you reach 70 1/2. After 59 1/2, you may continue
to withdraw for the rest of your life, no matter how long you live.
--
Morris M. Keesan
{decvax,linus,ihnp4,wivax,wjh12,ima}!bbncca!keesan
keesan @ BBN-UNIX.ARPAcanopus@amdahl.UUCP (Flaming Asteroid) (01/25/85)
> Does anyone know what the maxiumun age that you can withdraw money from an > IRA is? Everything that I read says 59 1/2 to at least 70 1/2 and up to your > "expected" life span. [...] > > John Eaton > !hplabs!hp-pcd!john The IRA rules are: You cannot withdraw money prior to 59 and 1/2. You must have withdrawn all of it by 70 and 1/2. The exceptions: If you withdraw prior to 59 and 1/2, you will have to: 1. Claim the amount withdrawn as normal income 2. Pay a 10% tax surcharge on the amount withdrawn 3. Possibly pay early withdrawal fees if the money was in a time certificate of deposit If it isn't all withdrawn by 70 and 1/2, you will have to claim the remaining balance as ordinary income for that year. -- Frank Dibbell (408-746-6493) {whatever}!amdahl!canopus [R.A. 6h 22m 30s Dec. -52d 36m] [Generic disclaimer.....]
jhh@ihldt.UUCP (John Haller) (01/25/85)
There is indeed a maximum age for which an IRA must be withdrawn, however, it is not easy to predict now. All funds must be withdrawn from your IRA by the time you have outlived your life expectancy. Also, each year after the one you reach 70 & 1/2, you must withdraw an amount equal or greater to your IRA balance divided by the number of years left in your life expectancy.