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|Subject: Re: Traditional IRA withdrawls||Date: 9/23/2001 4:33 PM|
|Author: TMFPixy||Number: 31963 of 74484|
Greetings, MrDP, and welcome. You asked:
I had a conversation this weekend with a relative and she stated the following: "Once you begin withdrawing money from a traditional IRA after you turn 59 1/2, you must withdraw 100% of the assets within 10 years". A source for this was not substantiated and IRS Publication makes no mention of such a requirement. Does the requirement have any basis in fact or is it a misunderstanding of some sort?
Did you ask this relative where she was buying her smokes? That statement is totally preposterous! Between the ages of 59 !/2 one may take as much or as little from a traditional IRA as one wishes. On reaching age 70 1/2 one must take a minimum required distribution (MRD) from the traditional IRA. But even the MRD will not exhaust the IRA in one's lifetime.
For the full details, have her read see our IRA Area at http://www.fool.com/money/allaboutiras/allaboutiras.htm and IRS Publication 590 (Individual Retirement Arrangements) available for download at http://www.irs.ustreas.gov/forms_pubs/pubs.html.
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