SDM Accounting Insights: Taking Distributions From Your Traditional IRA

September 13, 2019 00:03:11
SDM Accounting Insights: Taking Distributions From Your Traditional IRA
SD Mayer
SDM Accounting Insights: Taking Distributions From Your Traditional IRA

Sep 13 2019 | 00:03:11

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Show Notes

If you’re like many people, you’ve worked hard to accumulate a large nest egg in your traditional IRA (or a SEP-IRA). It’s critical to carefully plan for withdrawals. For example, if you need to take money out of your traditional IRA before age 59-1/2, the distribution will generally be taxable. In addition, distributions before age 59-1/2 may be subject to a 10% penalty tax. (However, several exceptions may allow you to avoid the penalty tax but not the regular income tax.) And once you reach age 70-1/2, distributions from a traditional IRA must begin. If you don’t withdraw the minimum amount each year, you may have to pay a 50% penalty tax on what should have been taken but wasn’t.

https://www.sdmayer.com/insights/blogs/individual-tax/taking-distributions-from-your-traditional-ira/

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