Message Font: Serif | Sans-Serif
No. of Recommendations: 1
<< I'm 73 1/2 and my wife will be 70 this month and eligible for IRA withdrawals from her SEP-IRA in November of this year. Our CPa and our (recent) broker weren't very specific about the amount she can withdraw. We've been told to add both our ages together and figure a combined life expectancy of 'about' 14 years and she can withdraw 'about' $7200 annually. Uncle Sam doesn't work with abouts so where is a booklet that tells us for sure how much can be withdrawn. And this thought - does she have to withdraw at all? (We don't need it except maybe to invest.) >>

You seem to be confused about allowable withdrawals vs mandatory withdrawals. At your wife's current age, and for quite some time in the past, she can withdraw any amount she wants, paying only income tax on the amount withdrawn.

Assuming that she turns 70 1/2 this year, she MUST take a minimum distribtuion for the year 2000 by 4/1/2001. She must ALSO take a minimum distribution for 2001 during calendar year 2001.

IRS guidelines for calculating the required minimum distribution are in Publication 590.

Phil Marti
Print the post  


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.
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.