Not sure what logic was used.
You are aware of the "rule of 55"?
Not sure what logic was used.
You are aware of the "rule of 55"?
Hello all, I was just wonder if anyone knows how or why the age of 59 1/2 was chosen as the age we can start withdrawals from our retirement?
Without penalty of course. Thanks everyone
I was not, thank you very much for that info. It’s definitely something that may apply. Much appreciated
This is just a guess on my part, but it seems like a compromise...some people probably wanted 60 and some wanted 59, so they compromised and picked 59 1/2 to get the bill passed.Hello all, I was just wonder if anyone knows how or why the age of 59 1/2 was chosen as the age we can start withdrawals from our retirement?
Hello all, I was just wonder if anyone knows how or why the age of 59 1/2 was chosen as the age we can start withdrawals from our retirement?
Without penalty of course. Thanks everyone
And why is gasoline priced with 9/10 of a cent? It's an artifact of how laws are written.
For fun, go buy 1 gallon of gas with cash, and demand the 1/10 th of a cent they owe you in change.
A semi-guess, but doesn't this 59 1/2 and the old 70 1/2 rule break down to "in the year you turn" 59 1/2 or 70 1/2?
I think what that does, is kind of level things for people born early Jan versus late Dec. If it was just age, someone born on Dec 31 would need to do a full RMD that year. Now, if I'm thinking of this correctly, people born in the first half of the year need to take the RMD that year, people in the last half start next year.
Like pb4uski mentioned in post #12, it avoids dealing with fractions of the year.
Does that make some sense? And isn't there some weird IRS rule about people born on Jan 1?
-ERD50
A semi-guess, but doesn't this 59 1/2 and the old 70 1/2 rule break down to "in the year you turn" 59 1/2 or 70 1/2?
I think what that does, is kind of level things for people born early Jan versus late Dec. If it was just age, someone born on Dec 31 would need to do a full RMD that year. Now, if I'm thinking of this correctly, people born in the first half of the year need to take the RMD that year, people in the last half start next year.
Like pb4uski mentioned in post #12, it avoids dealing with fractions of the year.
Does that make some sense? And isn't there some weird IRS rule about people born on Jan 1?
-ERD50
A semi-guess, but doesn't this 59 1/2 and the old 70 1/2 rule break down to "in the year you turn" 59 1/2 or 70 1/2?
I think what that does, is kind of level things for people born early Jan versus late Dec. If it was just age, someone born on Dec 31 would need to do a full RMD that year. Now, if I'm thinking of this correctly, people born in the first half of the year need to take the RMD that year, people in the last half start next year.
Like pb4uski mentioned in post #12, it avoids dealing with fractions of the year.
Does that make some sense? And isn't there some weird IRS rule about people born on Jan 1?
-ERD50