IRA withdraw question

[huusom]

Hi all:

I know that we can start withdrawing from IRA account without penalty at the age of 59 1/2 but the questions I have are:

1. Do we have to withdraw a fixed amount monthly/annually or can it be any amount and as frequent as we want?

2. What about the mandatory withdraw at the age of 70 1/2? How much and how frequent?

3. How do you manage your withdraws when most of the money is tied up in mutual funds, stocks or ETFs?

Thanks

 

[pb4uski]

1. You can withdraw as much as you want whenever you want. Whatever you withdraw will be taxable income in that year and would be subject to the 10% penalty if under 59 1/2 or meet an exception.

2. As frequent as you want, and the amount is a calculation that start out about 4% IIRC and increases with your age. Google RMDs.

3. You just sell the stock/mutual fund/ETF and have the IRA administrator send you the money or transfer it to one of your taxable accounts. If you don't need the cash you can sell the item in your IRA and then buy it back with the proceeds in your taxable account to maintain your overall AA (as long as you have other monies to pay the taxes).

 

[Independent]

Try this:

http://www.irs.gov/pub/irs-tege/uniform_rmd_wksht.pdf

 

[kaneohe]

3. You just sell the stock/mutual fund/ETF and have the IRA administrator send you the money or transfer it to one of your taxable accounts. If you don't need the cash you can sell the item in your IRA and then buy it back with the proceeds in your taxable account to maintain your overall AA (as long as you have other monies to pay the taxes).

pb4.........from a Schwab pub........sounds like you can do in-kind distributions too

Step 3: Choose how to get your distribution.
At Schwab, you have several ways to get your distribution. You can:
• Receive your IRA distribution online.4
• Set up recurring RMDs through Schwab MoneyLink®. 5 Your annual RMD will be automatically calculated and then transferred to the account you designate.
• Transfer investments in kind; such as move stocks, mutual funds, or cash from your IRA into your nonretirement Schwab account.
• Request a check.