Rules Changes to Aid Retirees Philadelphia Inquirer (01/23/01) Vol. 17, No. 45 p.D1; Brown, Jeff
New Internal Revenue Service (IRS) rules regulating required
minimum distributions (RMDs) stand to benefit retired-age persons. The
rules are for investors with traditional individual retirement accounts,
401(k), 401(a) profit-sharing plans, and 403(a) annuities. The new
rules will add significant value to an individual's tax-deferred
retirement plan because it lowers the withdrawal amount that must be
taken out each year after the age of 70.5. Moreover, IRA investors do
not have to wait for the rules to be finalized, but can use them now.
Prior to these rules, investors had to select among a variety of
calculation methods, and some key decisions were irreversible.