On 8/22/16, ~Cher~ wrote:
> Hi all,
> I haven't been here in ages..........I am just about
turning 70. Any others In
> California turning or turned 70 on this board.
>
> I don't know who to go to or what to do with retirement
now that we are
> forced to withdraw our TSAs starting at 70.
>
> Where do I go to find info about rolling it over and
investing etc.
>
> Thanks so much for any help!
Go to IRS and lookup RMD.
I just turned 70 in June so my RMD birthdate is the first
half of the calendar year and 70 1/2 would be in Dec so my
RMD should occur this year 2016.
Because your 70 birthday is past June 30, 2016 your RMD
would be in 2017 as you would be 70 1/2 next year 2017.
Your RMD amount is determined by IRS chart which is life
expectancy table, Treasure Regulation Section 1.401(a)
(9)-9. The amount is based on TSA or total sheltered
amounts on Dec 31, 2016.
You can also delay the RMD until the next year, but you may
end up having two RMD's in one year. I could delay mine
until next year but that would put me in two RMD's in one
year.
I prefer Vanguard so it was in house transfer. Remember the
RMD is a taxable event so you will have to pay Federal and
State tax on the amount. If you do not take out the RMD you
will be penalized with a 50 percent tax on the amount. So
make sure you take out the correct amount. Your TSA should
provide help and information about this but the amount is
not known until the end of the year balance on all TSA
accounts.
Good luck.
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