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Greetings, Momoney2000, and welcome. You wrote:

This year she'll turn that magic age of 70 1/2 but she doesn't want to retire and she doesn't want to pull her money out of her retirement account but because of laws, she's has to. Is there anything she can do or will she have to stick her chin out and take the MRD?

If she is still working full time, then she is not required to take MRD from any retirement plan she has at that place of work; however, she cannot avoid taking MRD from an ex-employer's plan or from her IRAs.

There are NEW rules for that NOT covered in the latest edition of IRS Pub 590. Watch TMF's front page for my article appearing some time this week. The new rules will lessen the the amount she must take. See the MDIB table in Appendix E of IRS Pub 590 to find the factor (age 71) she must divide into her 12/31/2000 market value to find the amount she must take this year. That's what she should take and claim as income for tax purposes on her 2001 tax return. If she doesn't need the cash, then she should just put it into a taxable savings account of some kind until she needs it.

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