Re:Reaching age 70.5 in Dec 98

From: "Steve Foulks" <steve_foulks@up.bresnan.net>
Subject: Re:Reaching age 70.5 in Dec 98
Date: Mon, 21 Sep 1998 01:12:06 -0400

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>From: "Marshall Farr" <farrm@cpcug.org>
>Subject: Reaching age 70.5 in Dec 98

>	I was 70 in June 98, and I know I have to start divesting myself of
>some of my IRA and Keogh investments.  Can someone point me to an
>appropriate web site (or any other source of definitive info) that
>gives an understandable explanation of the process and the actuarial
>choices one has to select from?  What forms need to be filed?  I
>assume one gets them from IRS, but I wrote them over 5 weeks ago, and
>haven't received a response of any kind.

I personally find IRS Publications 560 and 590 to be quite helpful.  You can
download these from

http://www.irs.ustreas.gov/prod/forms_pubs/pubs.html

or probably get them at your library.

  Are all tax-deferred
>retirement investments such as IRAs and Keoghs counted together in
>order to compute the current value of one's relevant investments?

They aren't all the same although regular IRA's and Keogh rules are the
same.  Money in a ROTH IRA never has to be withdrawn, and some money in a
403(b) plan is not subject to a required withdrawal.


>As of what point in time does one figure that current value?

The value is the end of year value in the year before the distribution is
used.  If you wait until 4/15/ in the year after you turn 70.5 to make the
distribution, you will need to make "two" distributions in that year - the
April 15th distribution for the prior year and a distribution by 12/31 for
the current year.

Steven M. Foulks, CPA, CFP, PhD
<http://www-instruct.nmu.edu/business/sfoulks/>

Northern Michigan University <http://www.nmu.edu/home.shtml>


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