No. of Recommendations: 2
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.

Regards..Pixy
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement