Required Minimum Distribution

The IRS requires that owners of retirement plans such as traditional IRAs (individual retirement accounts) start taking minimum distributions or withdrawals from their plans by April 1st of the year that follows the time at which they turn 70.5 years of age. The required minimum distributions are then made each of the following years. The amount of the required minimum distribution is based on the fair market value of the plan at the end of the prior year, and the assumed distribution period which is based on life expectancy given the person's current age. Required minimum distributions apply to a broad range of retirement plans including: 401(k); 403(b); 457(b); Roth 401(k); SIMPLE IRA; SEPs, and; SARSEPs. Roth IRAs are excluded from this requirement while the owner is still alive.

Retirement Planning Roadmap - Key Events

An outstanding layout of a retirement planning timeline from Emily Brandon at U.S. News and World Report. Key dates and ages are discussed for all manner of retirement planning milestones: 401k contributions and distributions. IRA contributions and distributions. Roth IRA contributions and distributions. Medicare. Social Security . Required minimum distributions. Source: U.S. News and World Report Full Story
Key Phrases: 

House Bill Would Impact Taxes on Annuities, IRAs and Longevity Insurance

A House bill introduced by Representative Earl Pomeroy, D-N.D., would affect the tax treatment of certain annuities and income from IRAs. H.R. 2748, the Retirement Security Needs Lifetime Pay Act, would create a tax exemption for 50% of the income drawn from a non-qualified annuity. The exemption would be capped at $10,000 per year. The bill would also create a 25% tax exemption for income payments from an individual retirement account (IRA). Last, the bill would exclude the value of longevity...

Roth IRA Questions and Answers

A great article on Roth IRAs and IRAs in Kiplinger's personal finance section. Income limits, contribution limits, Roth IRA conversions and tax implications are all addressed. Required minimum distributions and the waiver from Congress in 2009 are also discussed. Source: Kiplinger Full Story
Key Phrases: