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Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?

To: Bread Upon The Water who wrote (19844)	5/1/2008 1:34:00 PM
From: Sr K	Read Replies (1) \| Respond to of 149317

These tax comments are off-topic IMO. But for >>The required minimum distribution rule (RMD), which kicks in the year after you turn 70 and a half will require and ever increasing percentage of your income to be withdrawn each year as as you age<< it kicks in the year you turn 70 1/2, not "the year after you turn 70 and a half." Details are very important, and that's why I call this off-topic. And, an "ever increasing percentage of your income to be withdrawn each year" isn't quite right. It is a fraction, using 1 divided by a denominator from the applicable table (from Appendix C, if using Publication 590) (up to this point, it is an increasing fraction), but not of your "income". Your other income has nothing to do with it, and it is not a fraction of your withdrawal either. It is of the prior year-end balance in the account. So if your account rises in value, you could have more at a year-end than you had at the prior year-end even after taking the required minimum distribution. You can make multiple withdrawals during the year all of which together have to equal or exceed the RMD.