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IRA Withdrawal
If you are thinking about an IRA withdrawal, there are some specific points to know about
in order to avoid penalties or hassle...
You may need to pay a 10% additional tax if you withdraw from an IRA
before the age of 59½.
Also, when you reach the age of 70½, you have until April 1st of the
following year to begin
minimum withdrawals. If not, there may be an excise tax
penalty (IRS
Topic 451).
Use the
IRA
calculator to see what an IRA can do for you.
Several
Exceptions
There are several
exceptions to the age 59½ rule. Even if you receive a
distribution before you are age 59½, you may not have to pay the 10%
additional tax if you are in one of the following situations.
- You have unreimbursed medical
expenses that are more than 7.5% of your adjusted gross
income.
- The distributions are not more than
the cost of your medical
insurance.
- You are disabled.
- You are the beneficiary of a
deceased
IRA owner.
- You are receiving distributions
in the form of an annuity.
- The distributions are not more than
your qualified higher education expenses.
- You use the distributions to buy,
build, or rebuild a first home.
- The distribution is due to an IRS
levy of the qualified plan.
- The distribution is a qualified
reservist distribution.
(See Age 59 1/2 rule for further
info on above exceptions.)
Receiving
Annuity Distributions
As we just read, receiving annuity
distributions is an exception to withdrawal penalties from
distributions is an exception to withdrawal penalties from your IRA...
Stay on top of the latest changes and IRA
news here.
You should also get a great annuity
quote
- let us help guide you
through
the options to make the best choices for you!
Or, get a free consultation from a Certified
Financial Planner to go
over your plans to help you make the best decision for
your needs.
You'll be glad
you
did!
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to Annuities
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