Ask the Experts When Are IRA Withdrawals Required? AARP Bulletin
Ask the Experts When Are IRA Withdrawals Required - AARP Bulletin
70 1/2 to take those funds. But 2009 is different. Because of the economic downturn, individuals 70 1/2 and older are allowed to skip a year of withdrawals without penalty in 2009, thanks to the Worker, Retiree and Employer Recovery Act passed by Congress last December. That means older adults can leave their money in retirement accounts this year and grow their nest eggs rather than further deplete dwindling savings. The one-year moratorium on penalties for not taking required distributions applies to most types of retirement savings accounts, including IRAs, 401(k)s and 403(b)s. Carole Fleck is a senior editor at AARP Bulletin Today. Cancel You are leaving AARP.org and going to the website of our trusted provider. The provider’s terms, conditions and policies apply. Please return to AARP.org to learn more about other benefits. Your email address is now confirmed. You'll start receiving the latest news, benefits, events, and programs related to AARP's mission to empower people to choose how they live as they age. You can also by updating your account at anytime. You will be asked to register or log in. Cancel Offer Details Disclosures
Ask the Experts When Are IRA Withdrawals Required
Q. When must I start taking distributions from my IRA? A. Required minimum distributions are required once you turn 70 1/2, though you get some leeway for your first required withdrawal. You have until April 1 of the year after you turn70 1/2 to take those funds. But 2009 is different. Because of the economic downturn, individuals 70 1/2 and older are allowed to skip a year of withdrawals without penalty in 2009, thanks to the Worker, Retiree and Employer Recovery Act passed by Congress last December. That means older adults can leave their money in retirement accounts this year and grow their nest eggs rather than further deplete dwindling savings. The one-year moratorium on penalties for not taking required distributions applies to most types of retirement savings accounts, including IRAs, 401(k)s and 403(b)s. Carole Fleck is a senior editor at AARP Bulletin Today. Cancel You are leaving AARP.org and going to the website of our trusted provider. The provider’s terms, conditions and policies apply. Please return to AARP.org to learn more about other benefits. Your email address is now confirmed. You'll start receiving the latest news, benefits, events, and programs related to AARP's mission to empower people to choose how they live as they age. You can also by updating your account at anytime. You will be asked to register or log in. Cancel Offer Details Disclosures