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Author: lenshapiro Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76106  
Subject: IRA distributions Date: 7/24/1999 10:14 AM
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I am rapidly approaching 70-1/2 and need to elect an IRA distribution method. I am seeking information regarding the 'Time Certain' vs the 'Recalculation' method. Need info on benefits and liabilities of each method. Which is best for which agenda?, etc.
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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 12526 of 76106
Subject: Re: IRA distributions Date: 7/24/1999 11:43 AM
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Greetings, Lenshapiro, and welcome. You wrote:

<<I am rapidly approaching 70-1/2 and need to elect an IRA distribution method. I am seeking information regarding the 'Time Certain' vs the 'Recalculation' method. Need info on benefits and liabilities of each method. Which is best for which agenda?, etc.>>

You should get and read IRA Publication 590, Individual Retirement Arrangements obtainable at http://www.irs.ustreas.gov/prod/forms_pubs/index.html. There is no easy answer to your question as much depends on your income desires, your income tax bracket, whether you use a single or joint life expectancy, and the beneficiary election you make prior to reaching your required begginning date for distributions. In general, during your life the recalculation method will stretch out the distributions, but could cause problems for nonspousal heirs.

If you are in a 31% marginal bracket or higher, I strongly suggest you see a tax expert prior to making your decision. It's just a subject far too detailed to write about in generalities.

Regards..Pixy

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Author: lamons Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 12530 of 76106
Subject: Re: IRA distributions Date: 7/24/1999 3:30 PM
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The American Assoc. of Individual Investors had a good write up in their Jan.'99 journal if you can find a copy. Sometimes the IRS forms are hard to interpret.

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