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my IRA administrator (Fidelity) has sent me reminders in my account's mail telling me of this event. They tell me that I need to start the process of liquidating my assets from this account

Hi Rush. Are you sure about this? I have two IRAs each of which is administered by different financial institutions. My wife has one as well. We have had these accounts before we reached age 59 - 1/2 and we have never been told we had to liquidate the accounts.

Now when both of us reached age 70 that was a different story. We are both required to make minimum distributions as required by the IRS.

You might want to call Fidelity and get the full skinny on what they want you to do.

Regards,

ImAGolfer (retired '03)
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" rules regarding IRA's which state that, at the time the participant in such a plan reaches 59 and 1/2 years of age"

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

What rules?

As I recall, the required minimum distributions from IRAs begin in the
year you reach 70 1/2.

When you reach 59 1/2 you can withdraw funds without a penalty - but you are
not required to liquidate the thing.

Take a deep breath and look over the following links - and re-read the info sent to you. I suspect
you may be missing a "may" in the shock of actually getting close to the potential of retirement.

https://www.irs.gov/retirement-plans/retirement-plans-faqs-r...

https://www.fidelity.com/building-savings/learn-about-iras/i...

"Withdrawals between age 59½ and 70½

Starting at age 59½, you can begin taking money out of your retirement accounts without penalty. Keep in mind that you'll have to pay any federal or state taxes that might be due. You should also consider creating a plan for taking distributions; use our Planning & Guidance Center to help determine if your assets will provide the income you need during retirement."

Howie52
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my IRA administrator (Fidelity) has sent me reminders in my account's mail telling me of this event. They tell me that I need to start the process of liquidating my assets from this account

Hi Rush. Are you sure about this? I have two IRAs each of which is administered by different financial institutions. My wife has one as well. We have had these accounts before we reached age 59 - 1/2 and we have never been told we had to liquidate the accounts.

Now when both of us reached age 70 that was a different story. We are both required to make minimum distributions as required by the IRS.

You might want to call Fidelity and get the full skinny on what they want you to do.

Regards,

ImAGolfer (retired '03)
Print the post Back To Top
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