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The 20% need not be withheld if you are over 59 1/2.

Not according to Siebert! They are telling us it is automatic regardless of age, and that it has already been done and that we can't get it back. Only as a "Tax Credit", which we don't need, since we won't owe any taxes for year 2002. Incredible. This is the main reason we are considering switching the Keogh acct to another retirement vehicle at Siebert.

At this point, I need to know what retirement vehicle will allow us to continue to make contributions without the enforced "over 70 1/2" distribution, that in effect almost nullifies contributions. We still have a Corp EIN for the 401K that Siebert threw into an MP/PF Keogh when we transferred from Schwab to Siebert. We know that IRA's do have choices re withholding.

1)If a SEP-IRA is a simple corp plan, and we are still doing consulting in our S-Corp, can we continue to make contributions after reaching 70+?Or does the mandatory age limit distribution kick in, and must the contributions stop?
2)If a SEP-IRA means we will be required to take distributions annually, whether we want to or not, what other tax sheltered savings plans are available to us, that will work for the rest of our "consulting life"? (Note: as two architects, we seem to have more consulting business now than ever; architecture seems to go on forever, at least FLW and Johnson were/are examples in that regard) Roth-IRA's mean paying taxes up front; this doesn't solve the equation for us.

Somehow 30 years of working (often 7 days a week and hundreds of all-nighters) has to pay off for us now, without co-ertion regarding distributions and WITH the right to still increase our savings whenever we can.

Please, Fellow Fools, help us find the GOLD in these GOLDEN YEARS. Tax advisors cost us too much for our budget. I need your continued help to solve this thorny issue ASAP.

Thank you W401 and Pixy, especially.


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