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Chapter 3. Establishing an Income You Ca... > Minimum Distributions from Qualified...

Minimum Distributions from Qualified Plans

When you reach age 70.5, the IRS requires that you begin taking distributions from your qualified plans, including 401(k) plans, IRAs, TSAs, and 457 plans. You need to take this requirement into account when planning your income strategy. Here is a straightforward description of what the IRS requires:

No later then April 1 of the year following the year in which you turn 70.5, you must begin to take distributions from your qualified plans and you must distribute those assets over your remaining life expectancy or sooner. Your failure to take a required minimum distribution (RMD) is rewarded with the largest penalty assessed by the IRS absent fraud… 50 percent!


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