Through the years I ve put aside a tidy sum in IRAs. At age 65, it is legal for you to make withdrawals of any amount. On the other hand, if you don t need the money right now you can leave it alone for several more years. If you turned 65 in October 1995, you ll be 70 in March 2001. You will be required to start distributions by April 15, 2001.
Most people establish IRAs to save on income taxes.
Your IRA earnings have been tax free through the years. However, when you begin to make withdrawals from your IRAs, you must include the amounts as income on your tax return. You recalculate the withdrawal amount each year. If you die before withdrawing all your IRA funds, the beneficiary you named when you opened the IRA is legally entitled to the funds. Withdrawals must be started by December 31 of the year following your death.