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I have heard that there is a tax on IRA distributions that exceed something like $150,000? At the rate my investments are growing, I could reach that amount. Would it be wise to consider starting withdrawals early to avoid that? And if you don't need the income, then start a Roth?

Your information is, at least in part, incorrect. IRC §4980A did impose a 15% "extra tax" on IRA distributions in excess of $150,000 per year. Fortunately §4980A was repealed effective 12/31/96.

However, all IRA distributions are still governed by IRC §72(t) which imposes a 10% surtax on all distributions starting at dollar one unless you qualify for one or more of the exceptions: 1. age 59 1/2, 2. death 3. disability and 6 or 7 other exceptions.


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