People in retirement living situations might be interested to know that they don’t necessarily need to withdraw from their individual retirement accounts (IRA) this year.
November is the time of year when some seniors make withdrawals from their IRAs, according to USA Today. If these men and women don’t make the minimum withdrawals, they could pay penalties.
Therefore, they wait until the holidays to take cash out and then use it on presents, since they wouldn’t have anything to do with the money otherwise. But last year, Congress decided to waive the minimum withdrawal requirement for 2009.
The news source says that one of the benefits of not making a withdrawal is that it means seniors will have less taxable income. Elderly folks who have already taken money out because they didn’t know about Congress’ actions shouldn’t worry because the IRS is allowing them to put it back in their IRA, so long as this is accomplished before November 30 or within 60 days of when the withdrawal is received (whichever comes first).
Only seniors over the age of 70 and six months normally have to make withdrawals. The older a person is, the larger the sum has to be, according to Forbes.
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