MANDATORY RETIREMENT DISTRIBUTION RETIREMENT AFTER 70 1/2 PROVISIONS

MANDATORY MINIMUM RETIREMENT DISTRIBUTIONS (MRD) AFTER 70 1/2

• Everyone MUST receive their mandatory minimum yearly distribution from their IRA, and most other retirement plans by April 1st of the calendar year after when they reach 70 1/2. If they work past 70 1/2, the date for required distributions of their retirement plan is extended to is no later than April 1st of the calendar year after they retire. (It can be received monthly, or yearly, but must be at least the minimum required). The penalty for failure to receive it is 50% of what you should have received!!!

• Everyone can use the same new uniform table, and if spouse is over 10 years younger, the couple can base distributions on joint life expectancy (Additional Table not shown here).

• Don't forget that regular IRA contributions cannot be made after you turn 70 1/2! BUT you can still contribute to ROTH IRA'S, and to an employer pension plan (if still actively employed there).

• All banks, brokerage houses, mutual funds and other IRA providers must compute and report amounts of minimum distribution each year to the taxpayer AND TO THE IRS.

• How to use the ONE simplified table shown below: In the year you turn 70, you must divide the total in each retirement account including IRA accounts by 27.4 to determine the minimum to take out. And, in the year you turn 71, you must divide by 26.5. If you had an IRA of $10,000 in your account at the BEGINNING of the year you turned 71, then you would need to receive at least $378($10,000 divided by 26.5) during the year.

Age	Divide by	Age	Divide by	Age	Divide by
70	27.4	84	15.5	98	7.1
71	26.5	85	14.8	99	6.7
72	25.6	86	14.1	100	6.3
73	24.7	87	13.4	101	5.9
74	23.8	88	12.7	102	5.5
75	22.9	89	12.0	103	5.2
76	22.0	90	11.4	104	4.9
77	21.2	91	10.8	105	4.5
78	20.3	92	10.2	106	4.2
79	19.5	93	9.6	107	3.9
80	18.7	94	9.1	108	3.7
81	17.9	95	8.6	109	3.4
82	17.1	96	8.1	110	3.1
83	16.3	97	7.6	111	2.9

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