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IRA Conversion Rules 2010....5

IRA MDA rules refer to the minimum distribution amount rules that require the money in an individual retirement account to be withdrawn at a certain age. Get information on the minimum amounts of money that must be withdrawn from an IRA from an investment portfolio manager in this free video on individual retirement accounts.

Part of the Video Series: Investing & Personal Finance Tips
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Video Transcript

Okay, so what are the IRA MDA rules? Well the MDA are Minimum Distribution Amount rules. What that means is that when you have an IRA whether it'd be a SEP or Roth or Traditional, etc; when you reach the age of seventy years and six months, you need to take money out of that account. You'll start getting paper work; the reason for this is that the government doesn't want you to basically pass away without IRA. They've been deferring all these tax for all the many years that you've had to invest and then as you're getting pass your 70th birthday, they want you to start taking money out and, and spend that money, use that money and they can also at that point; if it's a Traditional IRA, they'll be able to pull taxes from that and get the tax that they've deferred for all these years out of your distribution amount of payments and there will be minimum amounts that the government will require and they will look at how much money you have on the account; they'll figure out a minimum amount that you need to deduct either every month or every year and at that point in time you just need to start taking the money out.


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