Typically upon reach the age of 70 1/2 you would have to begin taking out your minimum required distributions out of your retirement accounts. By retirement accounts I mean IRAs, 401(ks), and 403(b) accounts, all deferred taxation qualified accounts.
However, with the recently passed Worker, Retiree and Employer act of 2008, there is a one-year moratorium on the penalties so that retirees and older Americans will not be forced to take their withdrawals from these savings plans that have incurred dramatic losses with the state of the economy.
However, with the recently passed Worker, Retiree and Employer act of 2008, there is a one-year moratorium on the penalties so that retirees and older Americans will not be forced to take their withdrawals from these savings plans that have incurred dramatic losses with the state of the economy.
The typical penalty for failing to take the annual distribution is 50
percent on the amount that should have been withdrawn. There is an
AARP article that has a good example. You can read it here.
-Christopher J. Berry, Esq.
Bloomfield Hills Estate Planning Lawyer
-Christopher J. Berry, Esq.
Bloomfield Hills Estate Planning Lawyer
