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Chapter 20. And Now It's Time to Retire > Ready, Set, Go! - Pg. 198

And Now It's Time to Retire 198 For What It's Worth If you are still working when you reach age 70½, IRS rules allow you to postpone taking mandatory distribution from your employer's plan, if the plan allows for it. Distributions must begin April 1 the year after you retire, though. So watch that calendar--the IRS is unforgiving if you mess up on withdrawals. You can start to take out your money in the form of installment payouts. If your employer will allow you to leave the money in the account, he may also allow you to take the money out in installment payouts. Taxes will be due annually on the payouts you receive. But this system takes some plan- ning. The payouts may not last your lifetime. What if you choose a 15-year payout period and live another 20 years? Buy an Annuity Take your money in the form of an annuity, a series of payments meant to last your lifetime or that of your beneficiary. This works well for individuals who don't want to be responsible for making investment choices. Your employer or the mutual fund company managing your money can help