What percent of an IRA does a person have to take each month after they are 70 years old?
Asked by Charlie on Facebook.
If you have a traditional IRA, you must receive a minimum distribution starting when you are 70 1/2 years old. In order to figure out what that amount is, you must first find your account balance on December 31 of the previous year. Then divide that number by the applicable distribution period or life expectancy. You can find those numbers in the Life Expectancy Tables in the IRS publication on IRAs.
Learn more about traditional IRA distributions.
If you have a Roth IRA, you are not required to take distributions at any age. The minimum distribution rules that apply to traditional IRAs do not apply to Roth IRAs while the owner is alive.
Learn more about distribution rules and Roth IRAs.
Once you’re retired, you’ll need to maintain 70 to 90 percent of your pre-retirement income to continue your current quality of life. That’s not always easy to do. Meanwhile, it’s possible that you’ll be retired for a long time, maybe 20 years or more, because life expectancies are getting longer.
In other words, retirement is expensive.
So in order to retire comfortably, you have to save for it. Because of how investments have historically performed over long periods of time, a little bit saved now can be worth a lot more in the future.
If you’re not sure where to start, check out the Top Ten Ways to Prepare for Retirement.
This video explains why starting now matters.
Getting close to retirement age? Take the Mystery out of Retirement.
You can now get your Social Security Statement online. The online option is the only way to receive your statement unless you are 60 or older or turning 25 this year.
The statement provides estimates of the retirement and disability benefits you or your family may receive, making it important to have when financial planning. You can also use it to make sure your earnings are being accurately posted to your Social Security record. Incorrect reporting could mean that you won’t receive the benefits you are entitled to.
The statement also provides:
- A list of your lifetime earnings according to Social Security’s records
- The estimated Social Security and Medicare taxes you’ve paid
- Information about qualifying and signing up for Medicare
- Things to consider for those age 55 and older who are thinking of retiring
- The opportunity to apply online for retirement and disability benefits
- A printable version of your Social Security statement
To get a personalized online statement you must be able to provide information about yourself that matches information already on file with Social Security. Some people may not be successfully verified through this process. If you have trouble with verification you can request that a paper Social Security Statement be mailed to you. You can also visit your local Social Security office and present an identity document in order to create an account and gain access to the online version.
View your Social Security statement online.
Asked by Anonymous
how do i find out how much social sercurity i will gwt
The Social Security Administration’s Retirement Estimator can give you an estimate of your retirement earnings based on your actual Social Security record.
You can apply for Social Security retirement benefits when you are at least 61 years and 9 months of age and want your benefits to start in the next three months.
Estimate your Social Security retirement benefits.