Originally Posted by Gene
I turn 70 in February 2015. Should I be doing anything with my traditional IRA's before 12-31-14?
no. Tax law requires ira holders to take out at least minimum amounts from their accounts once they reach age 70½ at which time the IRA owner may distribute the full balance of the IRA or distribute a minimum amount each year. Technically, that means the IRA money must start coming out in specific increments no later than April 1 following the year you reach that age, 70.5, I mean.
To calculate the year's minimum distribution amount,you need to takeyour age on Dec. 31 of that year and find the corresponding distribution period. Distributions that occur on or after you reach age 59.5 may be subject to income tax but will not be subjected to the early-distribution penalty.so, the first RMD must be distributed by Apr 1 of the year after the year in which you reach age 70.5. For example, an IRA owner who reaches age 70.5 in Aug of 2014 must take his or her first RMD by April 1, 2015. IRA holders who elect to have a minimum amount distributed each year must, for subsequent years, distribute RMDs by Dec 31 of each year. This means that if you defer the first RMD until April 1 of the year after you turn 70.5, you will be required to take a second RMD amount in that same year, which counts as the second year for RMDs. IRA distributions cannot be deferred indefinitely. Generally, the IRA custodian/trustee will calculate the RMD amount and send the notification to you.